Facebook is sued after stock plunge 'shocked' market

Facebook could lose $151 billion in market capitalization today

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

The $16.8 billion loss of Facebook CEO, Mark Elliot Zuckerberg in one day is nearly the total funds the Nigerian government spent in 2017 fiscal year.

Thursday saw a record fall in the shares of Facebook, cutting the company's market capitalization from $629 billion to $510 billion after the prices plunged by 19%.

The lawsuit is designed for class-action status and seeks unspecified damages. But investors were concerned about possible revenue decline. These moves have likely impacted Facebook's earning projections and user numbers, which led to the 24 percent reduction in its stock value.

Facebook is also battling several other suits relating to the handling of user data in the Cambridge Analytica case.

Both the slower growth forecast and heavier spending reflect problems largely of Facebook's own making.

Mr Buffett now ranks third among the world's billionaires, while Mr Zuckerberg is sixth.

Facebook could lose $151 billion in market capitalization today
Facebook sued for misleading investors before stock plunge

Facebook investors are suing the social network, its CEO Mark Zuckerberg and CFO David Wehner after a poor earnings report wiped out almost $160 billion of shareholder wealth.

Zuckerberg reiterated in the earnings call last week that the company's major investments in security will lower its profitability.

"There's a bit of concern perhaps growing that the bloom's off the rose for these tech stocks, that they are not invincible", said Tim Ghriskey, chief investment strategist at Inverness Counsel in NY.

Facebook's user base and revenue grew more slowly than expected in the second quarter of 2018 as the company grappled with privacy issues, sending its stock tumbling after hours.

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

Facebook's shares were worth $629.6 billion Wednesday, but, by Thursday, were worth only $506.2, according to Tech Crunch. The shares closed up 0.5 per cent.

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