Facebook experienced the largest single-day decline in the history of US stocks, the market value fell almost 120 billion. After the release of a bad quarterly report, Facebook experienced the biggest drop in the history on Thursday
Zuckerberg may lose $15.8 billion in net assets, which is equal to the wealth of the 81st richest man in the world.
Starting at noon in the US East, the market value of social media giant Facebook fell about 120 billion US dollars to about 508 billion US dollars, and its share price once fell more than 20%. As of Wednesday’s close, Facebook’s market capitalization summed nearly $630 billion.
Historically, no company in the US stock market has ever lost $100 billion in market value in just one day. This throw was the worst in Facebook history. The fall came one day after the company missed return forecasts for the second quarter and warned that growth would be far weaker than estimated before.
The bursting of the Internet bubble also happened on September 22, 2000, Intel’s market capitalization decreased by 90.74 billion US dollars. Also in 2000, Microsoft has lost $80 billion in market value in single day. Apple has also lost $59.6 billion in 2013, and Exxon Mobil, which lost $52.5 billion in 2008.
At least 16 dealers have lowered their objective pricing for the site. According to Reuter’s data, 47 analysts covering the company, 43 are still buying, two are holding, and only two are selling. The median target price is $219.30.
Analysts at Moffett Nathanson said the company’s forecast is either a new economic reality for the company’s business model or a very open self-sacrifice to avoid further regulatory pressure.
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Facebook experienced has already a huge loss of value in this year. The company has already mentioned that it expects its revenue growth rate to slow down in the second half of this year.
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