Facebook's $100 billion-plus rout is the biggest loss in stock market history
On Thursday, Facebook encountered the largest loss in a day of market value by any company so far in the stock market history of U.S. after issuing a tragic quarterly report.
The social network giant's market capitalization plunged by $119 billion to $510 billion as its stock price dropped by 19 percent. By Wednesday's wrap, Facebook's market cap had made nearly $630 billion.
U.S stock market has never seen a company’s stock market losing $100 billion in market value in just one day, but many came close in two.
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Earlier in 2000, Microsoft has shed $80 billion of its market cap in a day, and the same year on Sept 22nd Intel lost $90.74 billion of its market value when the dot-com policies burst.
Facebook's huge loss of its market capital came the next day after the company reported second quarters to be disappointing active users globally as the revenue was weaker-than-expected, a key metric for Facebook.
The organization also mentioned their expected revenue growth rate to slow down in the second half of the year.
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Facebooks stock was downgraded by several analysts, consisting Nomura Instinet's Mark Kelley. "With stagnating core user growth, we think there is too much near- to mid-term uncertainty to recommend shares at this point," Kelley, who downgraded the stock to neutral from buy, said in a note.
Facebook has never seen such a percentage drop in its history.
