Over $109bn wiped off Facebook's market cap after growth shock

Over $109bn wiped off Facebook's market cap after growth shock

But the shedding is still notable because Facebook, until now, has only ever experienced growth in users quarter-to-quarter. The rout knocked US$91 billion off its market value in a day.

Facebook founder Mark Zuckerberg could lose his position as chairman of the firm.

Chief financial officer David Wehner triggered the selloff when he said sales growth would continue to slow through the rest of the year.

Facebook's shares recovered somewhat after the call. But those days are now gone, as the company's second-quarter earnings call made clear. By the time Wall Street closed yesterday, Facebook had lost over $120 billion of the company's value and shareholders are not happy. During the last 9 years, the channel has won over 197 awards and accolades at the prestigious Asian Television Awards, Ramnath Goenka Excellence in Journalism Awards, Indian Television Academy Awards, News Television Awards and Indian Telly Awards, making it India's Most Awarded English News Channel.

Facebook reported a 42 percent increase in revenue and a 31 percent jump in profits for its second quarter, compared with a year earlier.

Nearly all of Facebook's revenue - $13 billion of the total $13.2 billion - came from online advertising, a sector dominated by the California social network along with Silicon Valley rival Google. "Over the next several years, we would anticipate that our operating margins will trend towards the mid-30s on a percentage basis", Wehner said. The stock was up more than 23 per cent for the year, before it reported earnings after Wednesday's close. Within minutes it was down 15%, then 18%, then 24%.


Before the results were announced, Facebook's shares had closed in NY at $217.50, a record high, and had gained 23% this year.

Shares fell as much as 19.6 percent to $174.78, a decline that if sustained would wipe about $124 billion off the company's value - or almost four times the entire market capitalization of Twitter Inc.

Facebook's daily active users in Europe declined by 3 million amid the new regulation.

National Religious Broadcasters President Jerry Johnson told CBN News in an April interview that Facebook should apply the First Amendment to questions of speech; otherwise, he fears Christian and conservative voices will be silenced. 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. That will put a drag on sales because Facebook makes more money on its core News Feed than its other products.

Facebook is the largest social media company in the world, with Twitter the second-largest behind what Mark Zuckerberg created. "We've seen a greater-than-expected efficiency in a lot of our spend in things like warehouses, data centres, marketing".

And for those hoping for a swift bounce back, the company told Wall Street the numbers won't get any better this year.

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