webfact Posted July 26, 2018 Share Posted July 26, 2018 Zuckerberg loses more than $15 billion in record Facebook fall By Vibhuti Sharma and Munsif Vengattil FILE PHOTO: Facebook CEO Mark Zuckerberg speaks at Facebook Inc's annual F8 developers conference in San Jose, California, U.S. May 1, 2018. REUTERS/Stephen Lam/File Photo (Reuters) - Facebook Inc <FB.O> Chief Executive Mark Zuckerberg's fortune took a more than $15 billion hit on Thursday, as the social media company suffered the biggest one-day wipeout in U.S. stock market history a day after executives forecast years of lower profit margins. At least 16 brokerages cut their price targets on Facebook after Chief Financial Officer David Wehner startled an otherwise routine call with analysts by saying the company faced a multi-year squeeze on its business margins. That "bombshell," as one analyst termed it, played into concerns on Wall Street that Facebook's model could be under threat after a year dominated by efforts to head off concerns over privacy and its role in global news flow. Shares closed down almost 19 percent at $176.26, wiping more than $120 billion off the company's value or nearly four times the entire market capitalisation of Twitter Inc <TWTR.N>. Slowing revenue growth initially pulled the stock down nearly 9 in after-hours trading on Wednesday before losses picked up on the margin outlook. "Over the next several years, we would anticipate that our operating margins will trend towards the mid-30s on a percentage basis," Wehner said on a conference call with analysts. Facebook's margin fell to 44 percent in the second quarter from 47 percent a year ago as it spent heavily on security and initiatives to convince users the company was protecting their privacy. The company also said revenue growth from emerging markets and the company's Instagram app, which has been less affected by privacy concerns, would not be enough to repair the damage. The impact on the rest of the FAANG group of high-flying tech stocks was marginal. Shares in Alphabet <GOOGL.O> closed up 0.7 percent, while those in Apple Inc <AAPL.O> fell 0.3 percent and Netflix Inc <NFLX.O> closed barely higher. Amazon.com Inc <AMZN.O> was up 2.3 percent following its own results after the bell on Thursday. Of 47 analysts covering Facebook, 43 still rate the stock as "buy", two rate it "hold" and only two rate it "sell". Their median target price is $219.30. MoffettNathanson analysts called the company's forecast "either the new economic reality of their business model or a very public act of self-immolation to stave off further regulatory pressure". Rahul Shah, chief executive officer at Ideal Asset Management in New York, a Facebook shareholder, said executives were trying to reset expectations about growth but the outlook caught Wall Street by surprise. "A lot of value investors might jump in and support the stock at these levels ... it's probably a good buying opportunity for a long-term investor, but I wouldn't be jumping in with both feet today," he said. The more than $15 billion in net worth that Zuckerberg lost on Thursday is roughly equal to the wealth of the world's 81st-richest person, currently Japanese businessman Takemitsu Takizaki, according to Forbes real-time data. Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma, in recent years has trimmed, but not eliminated, the amount of Facebook shares in his clients’ accounts, and he said he sees the company as a three-year investment. "We own it for its leadership in the tech industry," he said. "It’s the F in FAANG, but what's to say that, 10 years from now, Facebook isn't the next Myspace and something else has taken its place?" (Click here https://tmsnrt.rs/2JV9APu for a graphic on Facebook's slowing revenue growth) (Reporting by Vibhuti Sharma, Munsif Vengattil and Devbrat Saha in Bengaluru, Noel Randewich in San Francisco and Trevor Hunnicutt in New York; Editing by Robin Paxton and Patrick Graham) -- © Copyright Reuters 2018-07-27 2 Link to comment Share on other sites More sharing options...
Popular Post theguyfromanotherforum Posted July 26, 2018 Popular Post Share Posted July 26, 2018 He didn't lose anything 5 Link to comment Share on other sites More sharing options...
Popular Post Get Real Posted July 26, 2018 Popular Post Share Posted July 26, 2018 (edited) One can only hope that the market will fall with 95%, so that they can close shop and bury the outdated and over criminalized Facebook. Edited July 26, 2018 by Get Real 8 1 2 Link to comment Share on other sites More sharing options...
Popular Post canuckamuck Posted July 27, 2018 Popular Post Share Posted July 27, 2018 Can't wait to see the rotting corpse of Face book consigned to the annals of history 8 4 Link to comment Share on other sites More sharing options...
Popular Post zaphod reborn Posted July 27, 2018 Popular Post Share Posted July 27, 2018 A little child shouldn't be running a multi-media giant. Zuckerberg should hire a real CEO to run the company. Zuckerberg has completely blown the crisis management response to Facebook's privacy scandal. 4 3 Link to comment Share on other sites More sharing options...
Popular Post Catoni Posted July 27, 2018 Popular Post Share Posted July 27, 2018 Oh no..... Zuckerberg lost more than $ 15 Billion.... The poor guy only has about $ 62 billion left.... How's he going to live on that ? ? 2 4 Link to comment Share on other sites More sharing options...
Popular Post soalbundy Posted July 27, 2018 Popular Post Share Posted July 27, 2018 good 4 2 Link to comment Share on other sites More sharing options...
Popular Post Scott Posted July 27, 2018 Popular Post Share Posted July 27, 2018 I was upset when I lost 40 Baht and couldn't buy lunch! 9 Link to comment Share on other sites More sharing options...
sammieuk1 Posted July 27, 2018 Share Posted July 27, 2018 Must be really tough for him its like holding a fistful post Brexit pounds. 2 Link to comment Share on other sites More sharing options...
pegman Posted July 27, 2018 Share Posted July 27, 2018 Ponzi scheme 2 Link to comment Share on other sites More sharing options...
Popular Post cornishcarlos Posted July 27, 2018 Popular Post Share Posted July 27, 2018 He probably sold a hefty chunk of shares before the announcement... Then bought them all back at 19% lower... Headline should probably read "Zucker made a cool 30 Billion in 4 hrs" ? 5 2 4 Link to comment Share on other sites More sharing options...
Get Real Posted July 27, 2018 Share Posted July 27, 2018 1 hour ago, Catoni said: Oh no..... Zuckerberg lost more than $ 15 Billion.... The poor guy only has about $ 62 billion left.... How's he going to live on that ? ? 1 hour ago, sammieuk1 said: Must be really tough for him its like holding a fistful post Brexit pounds. Yep, but we are all waiting with suspense, to get the news when the other 62 billions turned into the virtual dust they once came from. Don´t they say like this fro a reason? Earth to earth, ashes to ashes and dust to dust. Time to order the coffin, Sucker! 2 1 Link to comment Share on other sites More sharing options...
Skeptic7 Posted July 27, 2018 Share Posted July 27, 2018 2 hours ago, canuckamuck said: Can't wait to see the rotting corpse of Face book consigned to the annals of history Don't use FB, but u got a LONG wait...so don't hold ur breath 1 Link to comment Share on other sites More sharing options...
ThaiFelix Posted July 27, 2018 Share Posted July 27, 2018 Great news! 1 Link to comment Share on other sites More sharing options...
Tug Posted July 27, 2018 Share Posted July 27, 2018 OUCH !!! Link to comment Share on other sites More sharing options...
The Deerhunter Posted July 27, 2018 Share Posted July 27, 2018 4 hours ago, theguyfromanotherforum said: He didn't lose anything Yes. It is all only pieces of paper till you sell them. An Like Elon Musk. Call a guy a pedo and lose xxxx millions (Off the value of the shares) Link to comment Share on other sites More sharing options...
mtls2005 Posted July 27, 2018 Share Posted July 27, 2018 Time for re-branding? Get Sean Parker on the blower. Interesting that Youtube banned some truly sick and vile Alex Jones videos (one accused Robert Mueller of being a Pedophile, and called for killing him), but Facebook says they're OK. With a mid-term election coming up and assuming they still accept Rubles for payment for ads, FB should do well in the next two quarters? These InfoWars videos banned by YouTube are still alive on Facebook YouTube announced today that it had removed four videos–which express hatred toward liberals, Muslims, and trans children–by right-wing bullshit artist (proper media reference is “conspiracy theorist”) Alex Jones, saying that they had violated its policy on “violent or graphic content.” But three of the four videos are still alive and well on Facebook. It’s a timely demonstration of Facebook’s policy on fake news and other disinformation, on which it doubled down yesterday: It will not remove content that is merely false–the content has to threaten violence or violate some other part of the platform’s community standards in order to be taken down. Apparently at least three of the Jones videos weren’t threatening enough to be removed from Facebook. https://www.fastcompany.com/90208322/these-infowars-videos-banned-by-youtube-are-still-alive-on-facebook 1 Link to comment Share on other sites More sharing options...
otherstuff1957 Posted July 27, 2018 Share Posted July 27, 2018 Time for a gofundme? ? 1 Link to comment Share on other sites More sharing options...
Jonnapat Posted July 27, 2018 Share Posted July 27, 2018 Good 1 Link to comment Share on other sites More sharing options...
dirtynomad Posted July 27, 2018 Share Posted July 27, 2018 is Zuckerberg even human?.......its like he is on meds that have stripped away human emotions 1 Link to comment Share on other sites More sharing options...
ratcatcher Posted July 27, 2018 Share Posted July 27, 2018 Zuckerberg loses more than $15 billion in record Facebook fall Hey Thailand, that's what you call really "losing face....................book". 1 Link to comment Share on other sites More sharing options...
Johnniey Posted July 27, 2018 Share Posted July 27, 2018 4 hours ago, canuckamuck said: Can't wait to see the rotting corpse of Face book consigned to the annals of history Why? If you don't like it, don't use it. many people do like it. Live and let live. 1 Link to comment Share on other sites More sharing options...
blazes Posted July 27, 2018 Share Posted July 27, 2018 1 hour ago, Johnniey said: Why? If you don't like it, don't use it. many people do like it. Live and let live. I deactivated my account many years ago when I saw how I was being sucked into endless and aimless wandering from one thing to another. Also, I think FB, more than any other social medium, has destroyed the ability to communicate with words. It's all about thumbs up (but why not down?). I join those on ThaiVisa welcoming the demise of this cancerous sh!thouse. 2 Link to comment Share on other sites More sharing options...
tandor Posted July 27, 2018 Share Posted July 27, 2018 ..i know how he feels..i lost $500.00 once on some shares. 1 1 Link to comment Share on other sites More sharing options...
car720 Posted July 27, 2018 Share Posted July 27, 2018 6 hours ago, Scott said: I was upset when I lost 40 Baht and couldn't buy lunch! Good to know that you are a real person like the rest of us poor folk. 1 Link to comment Share on other sites More sharing options...
car720 Posted July 27, 2018 Share Posted July 27, 2018 I have observed facebook becoming less and less relevant, like me. I have an advantage though. As I become irrelevant so can I become irreverent. 1 Link to comment Share on other sites More sharing options...
wabothai Posted July 27, 2018 Share Posted July 27, 2018 Perhaps the gods are doing the world a favor. Link to comment Share on other sites More sharing options...
Credo Posted July 27, 2018 Share Posted July 27, 2018 (edited) I like Facebook. I am not enamored with it, but I use it and it is an easy way of staying in touch with friends from afar. How well or how badly it does is of little concern to me, but I do hope it stays around. Edited July 27, 2018 by Credo 1 Link to comment Share on other sites More sharing options...
Stargeezr Posted July 27, 2018 Share Posted July 27, 2018 Glad that I have no shares in Facebook, h*ll I do not even have a facebook account. Glad to see that Mark had a bad day! Geezer Link to comment Share on other sites More sharing options...
Credo Posted July 27, 2018 Share Posted July 27, 2018 26 minutes ago, Stargrazer9889 said: Glad that I have no shares in Facebook, h*ll I do not even have a facebook account. Glad to see that Mark had a bad day! Geezer When I have a bad day, I wished when I counted what I had it was close to what he still has! Link to comment Share on other sites More sharing options...
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