Facebook Biggest Single Day Massacre!
Guess you heard?
Facebook experienced the Biggest Single Day Stock Market Loss in History yesterday!
The social media giant lost a whopping $119.4 billion in value as Facebook shares tumbled 19% to $176.26, and Mark Zuckerberg’s personal fortune was erased by roughly $16 billion dollars!
To put this all into scale, Facebook’s record-breaking one day loss is akin to having Goldman-Sachs, BestBuy, and the Gap (which together have a market cap of roughly $121 Billion) getting wiped out all at once!
Mark Zuckerberg’s loss of $16 Billion net worth dropped him from the 3rd richest man in the word, to the 6th richest man in the world.
To place the magnitude of this loss in perspective, the personal net worth that vanished from Zuckerberg’s account on Thursday was roughly equal to that of the world’s 69th richest person, Estee Lauder Chairman Leonard Lauder.
Investors Spooked
Investors were “spooked” by a startling slowdown in the company’s growth, with Thursday’s record drop being sparked by the announcement after the markets closed on Wednesday that Facebook profits and revenue would be slowing – and that the number of active users had flat-lined.
Facebook CFO David Wehner warned that he expected to see growth decelerate by “high single digits” for the rest of the year, attributing much of the company’s slow growth to fluctuating currencies and to shifting the company’s focus to “growing new experiences such as stories” and “giving people who use the services more choice and privacy.”
As a result, spooked investors “ran for the exits” and pulled out of Facebook in record numbers!
Actually, this should come as no big surprise, with the tech behemoth on its heels “reeling” from the aftermath of the Cambridge Analytica scandal, which has brought intense scrutiny to its data sharing practices.
You can read more details about the Cambridge Analytica scandal by clicking the link to my April 11 article below:
Record Loss Rocked the Investment World
The news of Facebook’s largest single day loss in history “rocked” the World Tech investment community, with JP Morgan citing Facebook’s warning as “startling” and has speculated that the company would be shifting to “expectations of a more achievable level.”
Barclay’s analyst Ross Sander suggested that Facebook lowered its predictions to not “create the perception of getting rich while their products currently present issues to society.”
What is Your Take?
So what are your future financial predictions for Facebook?
First, is Facebook an investment vehicle you would still pursue, counting that they will successfully restructure their company and bounce back in light of recent scandals?
Second, in light of this stock market massacre and the recent scandal, would you remain invested in Facebook, or would you cut your losses now and run for the hills?
Please leave your comments below, as always they are greatly appreciated!
Cheers,
Kaju
Recent Comments
95
They will get back on track, as Jay said, it's time to buy or should you wait to see where the Trade War will lead first.
I think it will start to escalate now because not only China has retaliated, they've start to push the button first also with Qualcom.
For FB I believe in no time they will reduce the loss and start making benefice again.
It will also be a good opportunities to try running FB adds as it will be less competitive and cheaper.
Facebook is too big to fall now.
I believe many FB's investors were waiting for this moment, bad news big sell out. They take their benefits. Few weeks or months later they will start buying back at 19% or perhaps even more discount.
When you have millions or billions to spend for sure it's a good game.
Money attracts money, it's the reality of this world.
And the one who get scammed are the one who don't have so much money to lose, but they want to make money quick.
I believe only in one thing in this world (I've learned it by working with my parents):
Hard works = Success
Stop being an educate fool with money on your mind and stop chasing dreams, face reality and fight.
I think the stock will fall much more, and when it reaches near the abyss (now that may be heard to tell) I will buy the stock, as moresooner than later FB will recover.
So YES Calvin, you're right this will present an opportunity.
I hope it will fall farther, Lol.
I believe some investors do a progressive investing in this kind of case. Pehaps 1/3 of the sum they want to invest everytime they buy the stock.
They can benefit and it gives them the time to see how the stock progress.
That sounds like a very smart strategy Cal. I see that stock market investing isn't new to you :)
I personally enjoy Facebook and am happy with all of the resent changes to make the site more user friendly. I am not wealthy enough to invest in the stock market but if I were I would hold on to what Ive got as Facebook has become a fact of life for many people throughout the world and it is not going down any time soon and if ever without a fight.People like it and its here to stay
Hey Kaju,
I have never been impressed with FB. It may be okay for a social media site but never for a business site. I personally have seen too many people whose sites have been hacked that I don't even look at FB myself.
Tried and True
Elaine
Hi Kaju,
I have never been a fan of Facebook. A few years ago, I posted an advertising program on a product (before WA) we were selling.
I wanted to go to a certain rate, but one of their salespeople contacted me and against my wishes, tripled the daily cost.
I never could get ahold of anyone and the only way to shut it off was to cancel FB account.
I can't be overly hateful of FB, things do happen.
However, I have never thought of it as much of a necessity
Thanks for sharing.
Bill
Right now I am still locked out of FB, and quite frankly I do not miss it. I agree.
These days I am using Instagram and You Tube. Thanks for your feedback Bill and Sue!
Hi,
Facebook is still out there but if paying for ads then certainly dont use the Boost your post as an ad the insights there certainly don't deliver. Instagram part of FB is set to take over YouTube with its new IGTV. YouTube too are under scrutiny so I read up on today.
Yes I would still use Facebook. Next is a defo Instagram and YouTube I would turn to third.
Thank you for the great post Kaju. Great to catch up with you again.
~Debs :)
Great seeing you Debs and catching up. I agree, the Instagram ads are going to take over, I am mostly on IG these days. Heard about IGTV but not using it. Interesting about You Tube under scrutiny.
Instagram is my go-to right now in social media.
Hope you businesses are doing well Debs! I thought I might bring you a "wee" bit of inspiration and spark in case you missed it - I was down a bit when this brought me UP- and hit me BAM, Right Between the Eyes! 7th Premium Referral – BAM! Right Between The Eyes!
Hmmmm...very interesting post.
We are very new to FB as we avoided social media until we joined WA and realized there was nothing to fear about being 'out there' on the web.
Poor Mark, Z. Can't even get our heads around how much money this guy has. Hope he will recover with the billions he has left.
Is he a member here at WA, does anyone know;)
That's a great question C&P, I really don't know, I suppose only Kyle and Carson would.
Although I am not a big fan of FB, I believe after the correction over time it will recover.
I’ve been so disappointed with Facebook especially for business pages. The $ paid for promotion is not worth it as their estimates of reach are far greater then what you actually receive. I’ll continue to post but don’t have much desire to spend $ for “promoting” my site.
Sydney
Yes, I agree Sydney the return has been disappointing compared to the purported reach. And now in light of the recent scandal and the intense scrutiny that has been brought up to its data sharing practices, it is worse than ever.
Kaju
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I am not an investor in Facebook and do not use it much anymore. (Imagine that!...I guess I am in good company as so many people are backing away). I was actually just about to start adding more to my Facebook business page since I barely started that and didn't really use it.
I am sure Facebook will be around for quite awhile still. I am not surprised it is tumbling though. Everything that rises up that high is bound to crash at some point. It is just natural. I think it will coast along at a lower level of influence for years to come though.
When Facebook started getting popular there was no Pinterest, Instagram, Snapchat etc. They got a huge share of the market since there was little competition. Now the competition is getting big enough to challenge them and will keep them in check so to speak.
Ever since they shut down my account, I knew I couldn't work with Facebook. I had to invest some time with other social media and thank goodness I was able to establish a presence with the others (with LinkedIn being the highest so far with 1150 followers). This is really the time for Facebook fans to start looking for better options. I couldn't afford to leave my personal information on facebook anymore after everything that happened.
Hi Jessica, yes I agree Facebook will stay around but will settle at a lower level where it will coast. I am not a big fan of Facebook, have not been for a long time.
However, I don't feel Facebook will EVER be the same again.
I have found Quora to be way more efficient for getting traffic that actually converts to sales than other social media. It is based on people asking questions (so we can provide answers to those questions). We can add our post links to the answers and so people reading them are interested in what we have to say rather than just window shopping like most social media.
There are better options out there for sure, I agree. Not a fan of Facebook anymore.