Social Media Gaint Facebook Profit Plunge more than $119bn wiped off

Social Media Gaint Facebook Profit Plunge more than $119bn wiped off

Social Media Gaint Facebook Profit Plunge as more than $119bn wiped off its market value and $ 17 billion of founder Mark Zukerberg. It was all because of Cambridge Analytical scandal and fake news issues in many countries.

The Company shares plunged 19% in share market when company revealed that almost 3 million in EU had left FB after Cambridge Analtical data breach of 87 million Facebook profiles.

The collapse of Facebook’s share price is the biggest ever one-day drop in a company’s market value. Shares fell to $176, valuing the company at $510bn, a drop of $119bn from a record high of nearly $630bn on Wednesday.

Zuckerberg said on this occasion:

“GDPR was an important moment for our industry. Looking ahead, we will continue to invest heavily in security and privacy. This is our responsibility to keep people safe.”

he previous biggest collapse came in 2000, when Intel lost $91bn in a day. The amount of money wiped off Facebook’s market value on Thursday is equivalent to nearly the whole of McDonald’s.

The single biggest loser is Zuckerberg, who owns nearly 17% of the company and whose paper fortune fell from $86.5bn to about $70bn, sending him tumbling from the third-richest person on the planet to the sixth.

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The collapse came after the company told investors to expect a significant decline in growth rate, and as a result market share drop cost its founder fortune which fell from $86.5bn to about $70bn.

David Wehner, Facebook’s chief financial officer, said on Wednesday:

“Our total revenue growth rates will continue to decelerate in the second half of 2018, and we expect our revenue growth rates to decline by high single-digit percentages from prior quarters sequentially in both Q3 and Q4,” he said. “Looking beyond 2018, we anticipate that total expense growth will exceed revenue growth in 2019.”