BREAKING: Facebook stock collapse, wipes out $119 billion in market value in what is biggest one day value drop in corporate history
Facebook has suffered what is the biggest value share plunge in corporate history after its shares dropped by $41.24 to $176.26 and wiped out market value totalling $119 billion.
To put it into perspective, that is equivalent to the entire value of Nike, and makes it the biggest one day value drop in corporate history.
This comes after the various scandals surrounding the company in recent times, especially Cambridge Analytical and the revelation that Russians used the social network to meddle in the US. election.
This led to questions about the future of the company, and comes at the heels of thinly veined accusations by the US. congress and European parliaments, with the later insisting the company has to adhere to new privacy laws.
In the wake of all these, the company, last week, announced that profit would be “squeezed” for years while its user base and revenue grew more slowly than expected in the second quarter. Its monthly users in the same period rose by 11 percent to 2.23 billion compared to the same period last year, although user growth flat-lined in US. and the rest of North America and even declined in Europe.
Facebook has been trying to enter new markets, especially China, where major investments are already planned.
Zukerberg, the founder of Facebook, whose wealth is very much tied to the success of Facebook has himself lost $16 billion, according to Forbes.
The previous biggest drop in market value came in 2000 when Intel saw its share drop by a then record of $91 billion.