Facebook suffered biggest single-day loss. Facebook loss, dropping roughly 20% of it’s value in Stock Market
Social networking giant, Facebook loss about $120 Billion in US stock market. This drop sent shock waves in not just Wall Street but around the world as well.
According to the reports, Facebook lost about 20% of it’s worth. Hence, making it a painful session of work during last week. In other reports, the collapse caused the loss soar to 150 billion dollars in less than two hours. At the same time, the potential wealth of its founder, Mark Zuckerberg, was reduced to less than $70 billion against $86.5 billion at the end of the session the previous day.
2nd Quarter and Cambridge Analytica Scandal
Results for the second quarter of 2018 deemed disappointing. These may yet envy many of the listed companies. Despite the proliferation of privacy scandals in recent months, especially around Cambridge Analytica, Facebook is showing a growth in its turnover of 42% between April and June compared to last year. Meanwhile, the Net profit climbed to $5.1 billion (+ 31%). As of June 30, the well-known social network claimed 2.23 billion active monthly users and 1.47 billion active daily users.
However, the net profit of Facebook is higher than the expectations. But it still not prevent the market to punish the firm for the deceleration of the growth of the other indicators.
Mark Zuckerberg Comments
Commenting on the results, Mark Zuckerberg explained that the number of users had suffered. The suffering is due to the implementation of the general data protection regulations that came into force in May. According European Union, the regulations strengthens the rights of users. The founder of Facebook announced that the profitability of the group would suffer in the long run. “We’re investing so much in security that it will start to impact our profitability, we’re starting to see that this quarter,” warned Mark Zuckerberg.