Looks like all of the scandals that have rocked Facebook are finally taking its toll on the social media giant. Today it is widely reported that the company that Zuckerberg built is on course to suffer its largest loss financially since it went public.
In our best *Thanos impression* dread it, run from it, destiny still arrives. Facebook is about to learn that hard way today (July 26th). The tech giant is on pace to have its worst day ever on Wall Street, the company’s shares fell as low as $174.48 this morning after closing $217.50 on Wednesday. The unprecedented plunge for the company knocked off $118 billion off Facebook’s market value.
Billionaire, Mark Zuckerberg’s fortune also took hit due to the dive, he lost $16 billion, putting a dent in $86 billion paper fortune down to $70 billion. This makes him the single biggest loser due to the fact he owns 17% of the company.
The fall of the Silicon Valley company’s shares all happened in the wake of Facebook announcing a mass exodus of 3 million European users that have abandoned the social network. The Cambridge Analytica data fiasco also played a huge factor as well. Facebook’s chief financial officer confirmed that when he revealed on Wednesday that “more choices around data privacy” due to the scandal “may have an impact on our revenue growth.” Things don’t look promising for the foreseeable future either he added: “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.”
For so long Facebook has seemed invincible and able to weather the storm that was Russian propaganda. Zuckerberg admits his company “too slow to spot and respond to Russian interference, and we’re working hard to get better.” But is too late? Is Facebook heading towards social media purgatory? We shall if this slide continues for the once insanely popular social media giant.
H/T: The Guardian
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