Facebook plunge on projected slowdown
July 27, 2018 -- Facebook lost as much as $120 billion in value as its share price plunged by more than 19 per cent, following low user growth -- the biggest one-day wipeout of a listed company in U.S. history.
Facebook shares continued to flatline on Friday’s open after the social network reported lower than expected second-quarter earnings and growth.
A second-quarter rise in global daily active users (DAUs) of just 1.5 per cent, from 1.45 billion to 1.47 billion, and flat DAUs in the U.S. and Canada at 185 million disappointed investors.
In Europe, the number of DAUs fell from 282 million to 279 million amid controversial data leaks and fake news scandals.
Facebook has now set the record in single-day losses. In September 2000, as the tech bubble burst, chip maker Intel saw its stock price plunge by more than 20 per cent, knocking $91bn off its market value in a day.
In April 2018 the market capitalisation of Facebook, Amazon, Apple, Netflix and Google’s parent company Alphabet -- collectively known by the acronym Faangs -- plummeted by $86.6bn, while in June 2017, Faangs’ market cap fell by $126bn in two days.