Published: 2018-07-26 14:24
Last Updated: 2018-07-26 21:05
Facebook, the gigantic social networking company, lost around $150 billion in market capitalisation within a span of two hours on Wednesday July 25, 2018, Reuters reported.
The tumbling happened as shares of the social media dominant tool dropped by almost 20% in post-market trading in New York, amidst fears if this continues to happen through Thursday’s close, Mark Zuckerberg, the company’s owner and CEO, will lose his third rank according to Bloomberg Billionaires Index, to move into the sixth rank with a $70 billion left.
Graph showing the immense drop of Facebook Inc. Common Stock, July 23-26, 2018
Zuckerberg commented on this current "challenging state", with a statement where he reminded everyone about the company’s goal which –according to him- manifests in staying on top when it comes to creating "new tools to help people connect, strengthen our communities, and bring the world closer together.
The Californian based company has witnessed a shooting-star success since its stock launch. The graph below shows the steady increase of its stock worth since 2014. This only adds to the enormity of such a drop in a less than 48 hours span.
Hours after Facebook released its earnings report of this year's second quarter, an accelerated decline in stock worth shocked the business world. Investors who were accustomed to a double digit increase every now and then, witnessed a one of kind stock-graph that was aiming off of a cliff in less than a day.
Google’s strong ad sales, that's been competing with facebook in online advertising, announced its expectations for Facebook’s earnings and stock price - but some business experts suggested that the massive "spin" must be directly related to the newsfeed-based tool that Facebook lately introduced within its platform -the Story- which haven't been loved and used as expected and accordingly yielded to a monetary loss in terms of its advertising value.