Facebook sees biggest stock market value drop in history as growth slows

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Facebook lost more than $100 billion US in market value Thursday after the social media company posted earnings a day earlier that showed slowing growth.

The company was down by even more overnight after the company posted quarterly results late Wednesday showing the company’s growth was grinding to a halt in Europe and North America, at a time when  increased privacy safeguards would raise its cost of business.

The company closed at $217.50 a share on the Nasdaq on Wednesday, but that was before earnings came out. Then came the plunge in after-hours trading. The declines continued when the Nasdaq opened on Thursday morning. Shares were trading at $175.75, down more than 19 per cent.

At least 16 brokerages cut their price targets for the company after the company posted its results.

“With stagnating core user growth, we think there is too much near- to mid-term uncertainty to recommend shares at this point,” Japanese investment bank Nomura said.



Source

Business News

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