Facebook – Why it lost $120 billion in one day?
Reading Time: 1 minute

It was one of the biggest one-day losses in US corporate history.

At the start of the day, Facebook was valued at $630bn. By the end, it had dropped to $510bn .

Company founder Mark Zuckerberg personally lost more than $15bn (£11.5bn) in one day, seeing him fall from fourth to sixth on Forbes’ list of global billionaires.

The drop came after the social media giant published its second quarter results.

Although still positive, they came in below investor expectations – and company shares had plummeted nearly 20% by the end of the day.

So why the weaker numbers? Why did markets react so badly? And what does this mean for Facebook?

Facebook attributed their results to a new advertising format and giving users more control over privacy.

But the elephant in the room was the swirl of scandals surrounding the company.

The biggest involved Facebook sharing the data of 87 million users to a researcher at Cambridge Analytica, a political consulting firm.

Read more on BBC

 

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: