Facebook lost $US119 billion in value overnight, among the biggest single-day falls in US stock market history.
That is nearly the entire market value of corporate giants like McDonald’s, Nike and IBM.
The 19 per cent drop in Facebook’s share price (to $US176.26) marked the social media giant’s worst trading day since it went public in 2012.
As a consequence, the personal fortune of Facebook’s chief executive Mark Zuckerberg fell about $US15 billion to about $67 billion, according to Forbes.
Facebook’s bad day in comparison
on NYSEMcDonald’s$US122 billionGeneral Electric$US114 billionBHP Billiton$US126 billionIBM$US134 billionNike$US125 billionCommonwealth Bank$US131 billionRio Tinto$US96 billionNetflix$US158 billion
The drop in Mr Zuckerberg’s net worth is roughly equal to the wealth of the world’s 81st-richest person — currently Japanese businessman Takemitsu Takizaki, according to Forbes real-time data.
Previous record-setting bad days on Wall Street include Intel shedding $US90 billion in September 2000 and Microsoft falling $80 billion earlier the same year. Adjusted for inflation, Intel’s loss would equate to more than $US130 billion now.
This is because of privacy and the fake news fight
It occurred after Facebook executives predicted the company would face lower profit margins for more than two years, while reporting its quarterly results on Thursday.
That “bombshell” announcement, as one analyst described it, played into concerns that Facebook’s business model could be under threat — after a year dominated by efforts to head off concerns over privacy and its role in global news flow.
Facebook’s second-quarter results were the first sign that a new European privacy law and a string of privacy scandals involving Cambridge Analytica and other app developers were hitting the company’s business.
Mr Zuckerberg himself noted during a call with analysts that