Facebook market value plunges $119 billion

Facebook shares tumbled Thursday after it announced a slowdown in user growth and projected that its revenue growth would decelerate for the rest of 2018

The figure accounts for around a sixth of his total net worth.

His fortune tumbled by US$16.8 billion in late trading Wednesday, as shares of the social media giant slid 20 per cent at 5:37 p.m.in NY on disappointing results. It would also wipe his $13.7 billion of gains for the year, leaving him with just less than $70 billion.

The company also said revenue growth from emerging markets and the company's Instagram app, which has been less affected by privacy concerns, would not be enough to fix the damage. Those problems hadn't mattered to the success of the business - until now.

Facebook Inc's shares lost as much as a quarter of their value on Wednesday (Jul 25) after executives said that profit margins would plummet for several years due to the costs of improving privacy safeguards and slowing usage in the biggest advertising markets. "Earnings per share were $5.07, smashing analysts" estimations of $2.50.

Facebook has been an omnipresent part of American news for what seems like all of 2018, and rarely with a positive connotation. "Facebook has also been sucked into the probe into alleged Russian meddling in the 2016 presidential election". "Instagram has over 1 billion users, and all Facebook apps (Facebook, WhatsApp, Messenger, and Instagram) have 2.5 billion unique monthly users". "Our view is that the company is far from out of the woods", Brian Wieser of Pivotal Research said.

In North America, the daily user number was flat at 185 million, and in Europe it actually declined by three million people a day. Overall, average daily users increased 11% from the period a year earlier. The set of regulations gives users more control over their online data. And investors responded Thursday by hammering the stock of Facebook, one of the world's most valuable companies. In case of the latter, Wehner noted that "total expense growth will exceed revenue growth in 2019", pushing down operating margins.

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

Facebook has been playing favorites with certain users and companies who lean left politically, silencing pro-Trump people and companies including the influential Diamond and Silk. I saw them sprawled out across airports recently when I traveled, and it was definitely weird to see them.in-person, letting me know they're protecting my data more, on my phone. all while I know they don't. 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. The company may have halted more ad purchases than expected as it applied a broad definition of what's considered "political".

Zuckerberg placed himself in the midst of yet another controversy after he received considerable backlash for justifying the lack of diligence Facebook demonstrated while handling offensive social media content posted by Holocaust deniers. All told, the US$119 billion of its value that was wiped out is worth almost as much as McDonald's.

Cutting Zuckerberg's influence on Facebook has previously been rejected by shareholders.

Facebook disclosed in a security filing it will pay the $10 million in cash, which surpasses the $7.3 million the company paid for Zuckerberg's personal security detail in 2017.

On Thursday afternoon, Facebook watched its capitalization drop by $119 billion, lowering its valuation to $510 billion, which represents a 19 percent drop, according to CNBC.

The revenue guidance from the company was "unprecedented", said Gene Munster, an analyst at Loup Ventures, in a note to investors.

Trillium's proposal, if greenlit by investors including Facebook's own management, would require the company to appoint an independent chairman, breaking up Zuckerberg's dual role as CEO and chairman.

The new laws were only in effect for one month of the quarter, which means the company may feel more of an impact in the current quarter.

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