Facebook earnings disaster erased $120 billion in market value – the biggest wipe-out in US stock-market history,’ Business Insider is reporting.
It was reported on Wednesday that Mark Zuckerberg’s Facebook lost about $120 billion in market capitalization at the close of business on Wednesday.
Forbes reported that the series of scandals that Facebook has had to deal with has finally caught up with the tech giant.
The company’s shares tumbled by nearly 19% and as a result, Zuckerberg’s net worth which is also closely tied to Facebook’s dropped by $15.4 billion since markets closed on Wednesday.
Market Watch estimated that Facebook ‘lost roughly one-fifth of its value in the extended session Wednesday’. They also further reported that stock prices dropped about 7% immediately after the earnings report was released and close to 34 million shares changed hands in Wednesday’s extended session.
Although Investors took issue with the decline in sales and number of subscribers, the most damaging part of it all was the warning of a continued growth slowdown.
According to Forbes, ‘Facebook’s loss yesterday was the biggest single day drop since it started trading publicly in May 2012’.