Facebook Might've Just Had The Worst Day In Stock Market History

Facebook Might've Just Had The Worst Day In Stock Market History

Facebook Inc and its chief executive Mark Zuckerberg were sued on Friday (July 27) in what could be the first of many lawsuits over a disappointing earnings announcement by the social media company that wiped out about US$120 billion (S$163.43 billion) of shareholder wealth.

Currently, its stocks are at US$174.89 down 0.78 per cent.

Mr Kacouris said the marketplace was "shocked" when "the truth" began to emerge on Wednesday from the Menlo Park, California-based company. He also claims the massive plunge stemmed from "federal securities law violations from the defendants".

But not to forget that his annual salary is $1 and also not to forget ever that he is among the top 20 billionaires with a net worth of $71 billion according to Forbes but just recently he lost $15.4 billion in one day.

The company also said revenue growth from emerging markets and the company's Instagram app, which has been less affected by privacy concerns, would not be enough to fix the damage.

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The lawsuit seeks class-action status and unspecified damages. Unfortunately, Facebook's spokeswoman declined to release a further comment about the ongoing complaint.

Facebook founder and CEO Mark Zuckerberg lost United States dollars $15.7 billion today as Facebook stocks plummeted by 19%, reports CNN.

Facebook's legal storm seems endless, considering it has already faced dozens of lawsuits following its mishandling of user data.

Facebook said in its earnings report last week that it anticipated slower revenue growth and slimmer margins in the future, in part to improve the safety and privacy of the platform. Furthermore, the growth in the number of daily average users is slowing down as well. This was due to issues involving fake news, trolls, and even Russian manipulators.

The S&P 500 technology index fell 2.0 per cent, the most among the major S&P sectors.

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