Facebook loses $130 bn in just two hour, Zuckerberg $17 bn

Posted July 27, 2018

Cheddar tech reporter Alex Heath wrote that Zuckerberg has sold over $2.6 billion worth of Facebook stock since the company reported its Q1 earnings in April. For Mark Zuckerberg, it's just about a fifth of his net worth.

Despite facing a slew of controversies this year - from the Cambridge Analytica scandal, accusations of spreading violence in some countries, and spreading fake news - Facebook seemed to be on track with sales projections and profit estimates.

This means Zuck is now the sixth richest person in the world, rather than third wealthiest.

Facebook generated $13.2 billion in revenue, shy of Wall Street's expected $13.4 billion. Investors were spooked by forecasts form the company that revenue growth would continue to decelerate. Shares recovered slightly, closing after-hours trading down 20.2% at $217.50. Analysts who follow Facebook were blindsided, asking frequently on a conference call with executives for more information on exactly how the company's financial future had changed so dramatically. All of this was enough to spook investors in the shares on the Nasdaq when the market opened on Thursday morning.

More news: Matteo Darmian wants to leave amid Juventus & Inter links, admits Jose Mourinho

Wehner said quarterly revenue growth would be closer to 30 per cent the rest of the year. The company's user base flatlined in its biggest market, the US and Canada, at 185 million daily users, while declining 1% in Europe to 279 million daily users.

Facebook said for the first time more than 2.5 billion users interact with at least one of its apps each month (which include Instagram, WhatsApp and Facebook).

The social media platform earned $5.1 billion, or $1.74 per share, for the second quarter.

Its operating margin fell to 44 percent from 47 percent a year ago. They could similarly disadvantage smaller, lesser known companies that don't have the resources to comply and which could face big fines if they don't.

More news: ECP chief plays down delay in Pakistan election result announcements

"With stagnating core user growth, we think there is too much near- to mid-term uncertainty to recommend shares at this point", Japanese investment bank Nomura said.

Facebook also warned that the toll would not be offset by revenue growth from emerging markets and the company's Instagram app, which has been less affected by privacy concerns. The political research business collected private data of tens of millions of Facebook users.

As it stands, Facebook still boasts 2.23 billion users, which make up nearly a third of the entire population of Earth.

With Europe, users may have opted out of using the social network when they were confronted with its new privacy consent agreements, Wieser says. "Looking beyond 2018, we anticipate that total expense growth will exceed revenue growth in 2019".

More news: Modi To Gift 200 Cows To Rwandan President During Africa Visit