Facebook shares in a freefall after announcement of 2nd quarter results
Facebook released its quarterly results on Wednesday. As soon as the social media company gave information to Wall Street, it saw a huge drop in its shares. Not only did the company’s market cap decreased, but the company’s founder Mark Zuckerberg also saw a $ 16 billion (around 1150 billion) cut in wealth. Even on Thursday if Facebook’s shares continue to fall, then this social media company can make a history which Mark would never want to be a part of.
According to a Bloomberg report that if on Thursday, Facebook shares declined by 24 percent, the company’s 151 billion dollars (about 10,355.58 billion) will be wiped off. If this happens, then it will emerge as the biggest drop in US stock market history.
Facebook’s market cap decreased by $ 151 billion at one time on Wednesday. If Thursday also sees such a big drop, then it will be the biggest drop in a company’s market cap (in the American stock market) in a single day.
Talking on Wednesday, Facebook’s shares closed with a fall of 20 per cent. Because of this, the company’s market cap decreased by $ 126 billion. Facebook released the second quarter results on Wednesday. Not only has this company reduced its user base in the quarter, but its growth has also decreased. Investors were not happy with this news and the company’s shares got tarnished.
Talking about some major falls before that, Intel Corporation had lost a market cap of $ 91 billion (about 6240 billion rupees) in a single day in 2000. At the same time, Exxon Mobile Corporation had suffered a loss of $ 53 billion (about Rs 3634.74 billion) in October 2008.
