Social media giant shares, the most widely organised in the country, Facebook shares fall 19%….
Facebook warned that its rapid growth among user privacy concerns and other disputes is slow.
The stock fell to $ 176.26 per share from $ 41.24, which reduces Facebook‘s total share market value of $ 120 billion and reduces it to $ 511 billion.
Bloomberg reported that during the report of technology, losses for the publicly held US company in history were the biggest daily dollar fall in history due to a fall of $ 1 billion in Intel Corp’s share in September 2000,
although Intel’s drop still remains big When is adjusted inflation.
The fall wiped out $ 16.6 billion of property belonging to the company’s chief executive Mark Zuckerberg’s ownership of the shares. Even so, even after the loss,
Zuckerberg’s share was about $ 70.8 billion.
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Brian Vaiser, an analyst at Pivotal Research Group, said, “Simply put, the stock nozzis” is not able to grow forever “.“Facebook shares fall”
Last year, financial fears for the company with revenue of approximately $ 41 billion was related to the irony.
It created a turmoil around the privacy of more than 1.5 billion people, which generally use their site every day.
After being taught to Menlo Park, California, this issue pitch fever. The company had collected user data from 87 million accounts with political consulting firm Cambridge Antilica.
Zuckerberg was forced to testify about issues before US lawmakers three months ago, and Facebook started making changes to push user data forward.
Nevertheless, through this, the share price of Facebook was untrained, even this week it was also trading on record high.
Facebook changed the results of the second quarter in just a few minutes. In the subsequent hours business, investors immediately left the stock,
which allowed some analysts to allow Facebook to slow growth earlier.”Facebook shares fall”
Stephen Financial Corp’s analyst Scott DeWitt said in a note to customers, “It’s honest, honest.”
“Mark Zuckerberg has been talking about writing and writing business for months now and yet the management is discussing its impact on financial results.”
Facebook is growing rapidly. For example, its advertising revenues and total revenue increased 42% in the quarter compared to a year ago,
Its profits increased 31% to $ 5.1 billion – most of the profits would be jealous of most companies.
But Wall Street was also expected to gain a better advantage to justify the share price of Facebook.
Investor usually buys shares at prices based on expectations of future results, Facebook is entering into that revenue growth will slow down in the future,
it was a tough tablet to swallow for them.”Facebook shares fall”
$ 13.2 billion of Facebook’s revenue was embarrassed by analysts of $ 13.3 billion – the first Miss on the revenue forecast since 2015.
It did not help that the user’s development slowed down in Facebook’s two most attractive markets: North America and Europe.
The results were impressed with the security following the Cambridge Anilica scandal and the investment made to strengthen security after a Russian misunderstanding campaign on its site.
More worried for investors, Facebook said that it was to follow strict new privacy regulations in Europe in May, which slowed down advertising revenue growth.
Should such rules be adopted elsewhere – because privacy advocates recommend – which may indicate slow advertising growth in other markets.
The company has already made changes to its platform, which has slowed down revenue growth,
providing new privacy options that limit how much data can be collected to help Facebook fuel its advertising business.(Facebook shares fall)