Facebook loses more than Sh1.5trillion in record fall

Facebook in palm

Facebook in palm

Facebook's stock value crashed as trading opened, with share prices falling by around 18% after a hard second-quarter for the social media giants.

The loss is the biggest one-day wipeout of individual wealth ever recorded on the ranking, which started tracking the world's biggest fortunes in 2012.

Facebook's daily active users for the second quarter of 2018 were effectively flat in the US sequentially, and even declined in Europe compared with Q1 - marking the first time the company has seen such a decline in recent quarters. In the second quarter, Facebook had 279 million daily users in these countries, down from 282 million in the previous quarter, Recode reported.

Also alarming to investors: Facebook's growth is slowing with users in some of its most lucrative markets. Stamos reportedly still plans to leave the company next month, following a reorganization that the New York Times said earlier this year took away 98% of the group he managed.

Facebook has shown that it can not sail forever forward while facing various storms, including Cambridge Analytica and the Russian government's use of the social media platform to sow divisions amongst Americans during the 2016 presidential campaign.

Zuckerberg was the one calling the shots regarding the company's response to the Cambridge Analytica scandal.

The losses shaved about $100 billion off of the social media giant's market cap, and this also hit founder Mark Zuckerberg's net worth. The company beat the profit forecast, with $1.74 per-share earnings.

Like this story? Share it with a friend! Even so, if Facebook is legitimately investing the time and money in improving privacy at the cost of slowed growth, it should all be to consumer benefit in the end.

Describing the announcements as "bombshells", Baird analysts said the issues were to a large degree "self-inflicted" as Facebook sacrifices its core app monetisation to drive usage.

Facebook's market value had approached $630 billion as of the close of trading Wednesday. Based on the company's recent second-quarter financials, Facebook has a more conservative outlook on the future, expecting revenue growth to decline in the coming years.

Still, 4C saw more ad revenue pumping through its platform going into Facebook, Goldman says, especially into its Instagram platform.

In the near-hour after the release of the earnings report, the stock was down about 8%. Facebook revenue is still growing at a rate double that of Twitter Inc.cade ago, nearly no one could have imagined that Facebook would have more than 2 billion users, much less that its family of apps - Instagram, WhatsApp and Messenger - would also count members in the billions.

Company shares fell 19 percent Thursday.

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