The historic drop in Facebook shares came a day after the company announced a quarterly financial report that missed estimates. Daily global active users, an important measure for this social media platform, are also disappointing investors.
Facebook also predicted revenue growth will slow down compared to last year. However, earnings per share remained above Wall Street expectations, CNBC International reported.
Some Facebook executives also provide warnings about a slowdown in future earnings.
"We plan to develop and promote exciting experiences such as Stories that currently have low monetization levels, and we will also provide people who use our services with more options around data privacy that may impact our revenue growth," said Chief Financial Facebook Officer, David Wehner,
The comments seem to frighten investors, as Facebook's market value is reduced to $ 130B
When the market closes on Wednesday, Facebook's market value of $ 629.8 B. It is estimated that Facebook will open the market on Thursday with a market value of under $ 500 B.
The fall of market value and shares of Facebook at the close of the market on Wednesday (25/7) was a direct impact on Facebook CEO Mark Zuckerberg.
As reported by Forbes, Thursday (26/07/2018), Zuckerberg's fortune fell significantly to $ 63.6B after the market closed on Wednesday afternoon.
This represents $ 18.8B decline from Zuck's previous fortune of $ 82.4 B. This drop makes Zuckerberg's position in the ranking of the richest man in the world down four ranks to the eighth position, according to Forbes Real-Time Rankings.
Zuckerberg's wealth decline is influenced by the stock value of Facebook which continues to decline after the release of Facebook financial statements in the second quarter of 2018. The value of Facebook shares when the market closed on Wednesday afternoon slumped to USD 167 per share, or down more than 20%.
However, the value of Facebook shares on Wednesday is still higher than on March 27, 2018, when news leaks scandal data was first announced to the public. At that time the value of Facebook shares only amounted to USD 152.22 and Zuckerberg wealth of USD 61 billion.
Facebook earned $ 13.23 billion in revenue in the second quarter of 2018. It missed analysts' estimates of $ 13.36 billion in earnings.
Facebook's global daily active users in the second quarter of 2018 only reached 1.47 billion users. Compared with analyst estimates of 1.49 billion users.
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