Facebook could lose $151 billion in market capitalization today

30 July, 2018, 21:33 | Author: Kathy Ellis
  • Facebook could lose $151 billion in market capitalization today

Facebook founder, chairman and CEO Mark Zuckerberg, who has started feeling the pressure with lawsuits being filed against him, is also being asked to quit the top post by shareholders.

Thursday's massacre of Facebook shares, which plunged 19 percent in the biggest one-day drop in history, answered one big question. As a result, at least 16 brokerages slashed their Facebook stock prices. The announcement tied in with growing concerns over its business model following controversy over their privacy policy and involvement in global news dissemination.

Facebook shares were down as much as 19.6 percent at $174.78 in early trading, a decline that would wipe about $124 billion off the company's value - or almost four times the entire market capitalization of Twitter Inc.

Facebook said in its earnings report last week that it anticipated slower revenue growth and slimmer margins in the future, in part to improve the safety and privacy of the platform. Compared to previous year, Facebook's margins dropped three percent in its second quarter. Though the company boasts a massive 2.23 billion users, the growth in active daily users has fallen from 17% past year, to 11%. Facebook's chief financial officer warned that revenue growth would "decline by high single-digit percentages" for the rest of the year.

Of 47 analysts covering Facebook, 43 rate the stock as "buy", two rate it "hold" and two rate it "sell".

Real Madrid 'end Hazard interest' after Chelsea demand world-record fee
Willian's role at Real Madrid would be one of support from the bench, offering pace and directness in the latter stages of games. And while the European champions are big admirers of the Belgian, new boss Julen Lopetegui feels he already has enough options.

Their median target price now sits at $219.30.

Facebook could potentially lose $151 billion in market capitalization when trading opens on the New York Stock Exchange on Thursday, 26 July.

"A lot of value investors might jump in and support the stock at these levels ... it's probably a good buying opportunity for a long-term investor, but I wouldn't be jumping in with both feet today", he said. Microsoft lost $77 billion in a day during the dot-com bust, according to Bloomberg.

Facebook shares significantly fell (around 0.8 percent), closing at about $174.89 on the Nasdaq.

"We own it for its leadership in the tech industry", he said.

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