On Thursday, July 26, Facebook has been reported to have set a historical record of having the biggest drop in the market value within a day.
Facebook announced on Wednesday, July 25, that they are currently experiencing a decrease in their revenue growth. It was not visible until it was reported the next day that the company’s stock has fallen by almost 24 percent in after-hours trading same day as their announcement.
The company lost $118 billion of its market value, the biggest loss of a single company for a day ever recorded for the past 18 years and to make it even more dramatic, as what the mass addresses the situation, 19 percent of its share has been down.
Mark Zuckerberg has also been gravely affected by this current situation as he lost almost $11 billion of his personal net worth- this was given as he was the CEO of Facebook. Nonetheless, it looks like Zuckerberg would not be claiming the title of the world’s third-richest person anytime soon.
One of the biggest reason for the following occurrences is due to the abrupt decrease of active Facebook users in Europe. Almost 1 million people have stopped using the social media platform in the country for the meantime.
It seems like a lot are still being cautious of using the social media application since the privacy crisis broke earlier this year. Considering that the issue has been continuously talked about since a lot of misleading information has spread to the mass.
The company said that they are focusing on the maintenance of securing the application and is investing a lot to make sure that none of the previous events will ever happen again.
A lot of people, especially critics, speculated that this event has caused the end of the company’s wild growth. On the bright side, many are still believing that the social media giant would be able to go through this and bring back once again its glory.