Tech firms prepare for share price plunges as Facebook loses $128 billion in TWO HOURS, spreading contagion through the US stock marketFacebook’s price plummeted by 24% Wednesday following a dire profits briefingFocused on declining user growth and the cost of responding to new data rulesBegan sell off of other tech shares over fears Facebook’s problems not uniqueSeveral tech companies started Thursday down and could face more volatility
US technology companies are set for a bumpy ride on Thursday’s stock market as contagion spreads through the sector after Facebook shares plunged 24% on Wednesday.
Facebook’s stock plummeted following a dire second quarter briefing focusing on slowing ad market growth and increased spending on data security following the Cambridge Analytica scandal and new EU privacy rules.
This led to investors worrying Facebook’s problems are not unique, resulting in share sell-offs throughout the tech sector on Wednesday. Twitter was down 6 percent, Amazon and Google 2 percent and Apple 1 percent.
Facebook’s stock plummeted following a dire second quarter briefing focusing on slowing ad market growth and increased spending on data security following the Cambridge Analytica scandal and new EU privacy rules
The tech-dominated Nasdaq Composite and S&P 500 dropped 1 percent at opening on Thursday – setting it on track for its worse day since June 27.
Facebook itself could be set for its worst day in six years as a public company as its stock dipped 20.4 percent to $173.20 in premarket trading.
‘It’s all about tech and Facebook,’ Tom Essaye, founder of The Sevens Report, told CNBC.
‘Facebook earnings and guidance were a disaster and at one point the stock was down 25% overnight.
‘Now, the question is