Zuckerberg loses $16 billion in record Facebook fall

Facebook growth figures

Facebook growth figures

The company beat the profit forecast, with $1.74 per-share earnings. The company's stock plunged 20% at one point, taking Zuck's personal net worth down with it.

Stories enables users to upload short user-generated photos or videos and Facebook is hoping that it will create growth for the social media company.

That could be down to the drop being a one-off, potentially following the Cambridge Analytica data sharing scandal, or even the sharing of private posts belonging to some 14 million Facebook users, rather than a downward spiral for Facebook.

The $15.8 billion in net worth that Zuckerberg stands to lose in the move is equal to the wealth of the world's 81st-richest person, now Japanese businessman Takemitsu Takizaki, according to Forbes real time data. The social network missed analysts' expectations of $13.36 billion in revenue, while Q2 2018 marked its slowest ever user growth rate.

Nasdaq futures dropped 0.85 per cent late on Wednesday, suggesting the technology-heavy Nasdaq Composite index would fall when trading opens on Thursday morning.

Facebook active user figures
Facebook active user figures

The company reported weaker-than-expected second-quarter results and issued guidance that its financial future is not as rosy as some investors thought it might be.

Young investors are betting that Facebook's earnings disaster and subsequent stock landslide are presenting a buying opportunity to get the stock at an attractive valuation. We're starting to see that this quarter. Leading up to the new stricter privacy rules, Facebook notified users across Europe of pending changes to its privacy policies.

Facebook said for the first time more than 2.5 billion users interact with at least one of its apps each month (which include Instagram, WhatsApp and Facebook). Almost all social media services have received greater scrutiny since United States intelligence agencies in January 2017 revealed that organizations tied to the Russian government had seeded content on the platform to shake up the 2016 USA presidential election. "The core Facebook platform is declining", said Brian Wieser, an analyst at Pivotal Research Group. The loss of users - the whole reason for the network effect, the reason Facebook can charge advertisers so much money - is what Facebook needs to overcome. They could similarly disadvantage smaller, lesser known companies that don't have the resources to comply and which could face big fines if they don't.

The quarter was also marked by Europe's implementation of new data laws, which Facebook said led to fewer daily visitors in that region. Investment company Trillium Asset Management, who has about $11 million in Facebook stock, is proposing to break up Zuckerberg's role as both chairman and CEO, Business Insider reports. We think that's the right thing to do for the business in terms of ensuring the community's safety and security and the durability of the franchise.

Facebook now employs 30,275 people - an increase of 47 per cent year-over-year. "Looking beyond 2018, we anticipate that total expense growth will exceed revenue growth in 2019".




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