Facebook has worst day in stock market history

Facebook’s losses came after the company warned of slower growth ahead. Facebook’s market cap was $629 billion at market close Wednesday, and ended the day Thursday at around $510 billion.

The world thinks Facebook is invincible, with over 1 billion daily active users, billions of images and videos uploaded every month.it is ingrained in our very social fabric. All of this was enough to spook investors in the shares on the Nasdaq when the market opened on Thursday morning.

Immediately following the company’s disappointing earnings report – in which it reported worse-than-expected user growth and revenue – investors sent its shares down more than 10%.

Trillium’s proposal, if greenlit by investors including Facebook’s own management, would require the company to appoint an independent chairman, breaking up Zuckerberg’s dual role as CEO and chairman.

“The perceived narrative surrounding Facebook has changed after yesterday’s earnings announcement”, said Jeff Henriksen, managing partner at Thorpe Abbotts Capital, according to the Business Insider.

Chief financial officer David Wehner triggered the selloff when he said sales growth would continue to slow through the rest of the year.

Revenue increased 4% to $13.2 billion in the quarter.

‘Over the next several years, we would anticipate that our operating margins will trend towards the mid-30s on a percentage basis, ‘ Wehner said in a conference call.

The website pointed out, though, that Facebook’s dual-class share structure may prevent the proposal from gaining steam. Within minutes it was down 15%, then 18%, then 24%. In recent trading, they were down $43.99, or 20.2%, to $173.51 a share.

Instagram and Facebook users see about the same number of ads, but Instagram ad prices are half of what Facebook charges because of the limited number of advertisers vying for spots on Instagram, four ad buyers said.

First, Facebook is battling currency headwinds. Its overseas revenue got a boost in dollar terms as the dollar appreciated against other currencies previous year.

Facebook is now down 3.2% this year. And he reiterated a point made during earlier calls: that Facebook’s profitability will suffer because of its heavy investments in security.

Facebook missed projections on revenue and global daily active users this quarter after struggling with data leaks and fake news scandals. And the company told Wall Street the numbers won’t get any better this year.