Facebook Stock Decline Is Largest One-Day Drop in U.S. History

  • Facebook Stock Decline Is Largest One-Day Drop in U.S. History

Facebook Stock Decline Is Largest One-Day Drop in U.S. History

The platform has been accused of helping violence spread in Myanmar, India and Sri Lanka.

"I'm Jewish, and there's a set of people who deny that the Holocaust happened", Zuckerberg said in the interview. But the sell-off points to growing concerns that Facebook will not emerge unscathed from the many controversies it faces.

Facebook said that it brought in adjusted earnings of about $1.74 per share for the period, which was two cents ahead of the Wall Street consensus estimate of $1.72 per share, according to Thomson Reuters.

Previously, since the announcement of the Cambridge Analytica debacle earlier this year, Facebook's stock price had fallen, but had since more than recovered.

Facebook Inc on Wednesday reported slower user growth, revenue that fell short of analysts' expectations and increased spending to safeguard data, which cut into its profit margin in the second quarter and sent shares down 7 percent after hours. The news sent Facebook's stock free-falling almost 25 percent in after-hours trading.

Zuckerberg himself lost more than $15 billion in net worth in one day and is no longer among the top five billionaires in the world, USA Today reported. That $120 billion plunge is the biggest-ever one-day loss in dollar value for a United States company.

RBC Capital Markets analyst Mark Mahaney said the drop creates a rare buying opportunity for Facebook shares. Apparently, Facebook believes we are too stupid to know what's best for us, and that a computer algorithm will do a better job of choosing what we should see, than we could do for ourselves.

During the call, Facebook Chief Executive Mark Zuckerberg tried to recast the disappointing earnings.

Facebook (NASDAQ:FB)'s European user base declined by 1 million users and as mentioned above, growth remained static in the USA and Canada. European DAUs were down from 282 million last quarter, potentially related to the effect of the enactment of the General Data Protection Regulation (GDPR) in the European Union.

"GDPR was an important moment for our industry", Zuckerberg said on Wednesday.

It continues, "In approving this annual security allowance, the Committee considered Mr. Zuckerberg's position and importance to Facebook and the fact that Mr. Zuckerberg has requested to receive only $1 in annual salary and does not receive any bonus payments or equity awards ..." They believe users have woken up to Facebook's growing list of controversies and chose to vote with their "Log Out" buttons. The company is also rapidly expanding its real estate around the world to accommodate a hiring spree, which includes thousands of new workers to help combat foreign election manipulation on the site. "We've seen a greater-than-expected efficiency in a lot of our spend in things like warehouses, data centres, marketing". How many more people are realistically going to join? "This is not okay'".