Facebook CEO Zuckerberg loses $16b in 5 minutes

Facebook Inc CEO Mark Zuckerberg's fortune tumbled by US$16.8 billion in late trading Wednesday

Facebook Inc CEO Mark Zuckerberg's fortune tumbled by US$16.8 billion in late trading Wednesday Chip Somodevilla Getty Images

While Facebook was fined and CEO Mark Zuckerburg apologised repeatedly, Facebook's reputation has been damaged and it is literally paying the price.

Facebook lost users in Europe in the second quarter, when it implemented changes to follow new privacy rules in the European Union and faced more intense scrutiny in the fallout from the Cambridge Analytica affair.

The stock plunged 19 percent in early trading Thursday, eradicating well in excess of $100 billion in market value.

The stock plunge would wipe about $124 billion off the company's value, or almost four times the entire market capitalization of Twitter Inc.

For numerous world's richest people, losing $16.8 billion in a day would be a wipeout.

Facebook suffered a blow in China on Wednesday when regulators there withdrew their approval of a company innovation hub to support local startups, the New York Times reported on Wednesday, citing a person familiar with the matter.

The stock value drop amounted to a $119-billion loss.

He was one of the few analysts to have a "sell" rating on the company even before Wednesday.

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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". "The core Facebook platform is declining", said Brian Wieser, an analyst at Pivotal Research Group. We think that's the right thing to do for the business in terms of ensuring the community's safety and security and the durability of the franchise.

In recent months, scandals have roiled the world's largest social media network.

Facebook shares have already been through a rollercoaster of ups and downs this year, with the biggest slump coming in April after it emerged data from tens of millions of users had been acquired by Cambridge Analytica.

"We own it for its leadership in the tech industry", he said.

FACEBOOK HAS BLED one million active monthly users since the General Data Protection Regulation (GDPR) came into effect. It was my mistake, and I'm sorry. "We're also making changes to account recovery to reduce the risk of scraping as well".

But for a company used to growing those numbers handsomely throughout the year, a lack of meaningful growth will cause concern, if not panic.

Factors contributing to Facebook's slowing sales growth include currency-exchange rates, compared with "the tailwinds we have experienced over the last several quarters", Wehner said. The number of users in North America remained flat, at 185 million people. Facebook reported its slowest growth rate ever, with 2.23 billion people logging in at least once a month in June, below the 2.25 billion analysts expected.

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