Mark Zuckerberg, Facebook boss, loses $16.8 bn in just 2 hours

Facebook had 1.47 billion daily active users in June


MUMBAI: After a trembling quarter which was full of controversies regarding data security, Facebook faced the hit on stocks too. Following the Cambridge Analytica scandal, the social media giant lost the faith of users and faced backlash from policymakers. Now, after a poor Q2 result with a weaker-than-expected revenue growth, the company lost about $130 billion in market value in just two hours. CEO Mark Zuckerberg, the third richest man according to the Bloomberg Billionaires Index, lost $16.8 billion in extended trading.

If Zuckerberg’s loss holds through Thursday, he will slide to sixth place in the Bloomberg Billionaires Index.

In Q2, Facebook could not reach the Wall Street-projections for growth in revenue as well as daily users. Moreover, the company also told the numbers won’t get better this year. The stock slide started right after Facebook posted the result which was later triggered by chief financial officer David Wehner’s comment on slow growth throughout the year. Shares plunged as much as 24 per cent afterwards.

Facebook had 1.47 billion daily active users in June, compared with the 1.48 billion average of analysts’ estimation. In Europe, the implementation of strict new data regulations led to 1 per cent decline in daily visitors. Even in its biggest markets, the US and Canada, the user base did not grow. The company added 22 million daily active users, lower than the 41 million it added in the same quarter a year earlier. While analysts projected $13.3 billion, the revenue increased 42 per cent to $13.2 billion in the quarter.

“I think many investors are having a hard time reconciling that deceleration,” an analyst at Jefferies LLC Brent Thill told Facebook executives. “It just seems like the magnitude is beyond anything we’ve seen, especially across a number of the tech (companies) we cover,” he added. However, some analysts think the harsh truth is that the platform can’t grow forever. “The core Facebook platform is declining,” an analyst at Pivotal Research Group Brian Wieser said.

Facebook will increase spending to make investments in video content, artificial intelligence, and virtual reality. The company is growing its video play with new sports broadcasting rights and content deal for news. However amid all new plans also, it could not live up to expectation. Since 2015 Q1, this is the first time it could not meet revenue growth.

Latest Reads

PallyCon partners with Akamai to offer forensic watermarking protection to OTT Content

PallyCon, a global leader in digital rights management and forensic watermarking services, has teamed up with Akamai, the intelligent edge platform, to secure streaming video content against piracy and illegal distribution.

iWorld Over The Top Services
Disney+ Hotstar Premium adds kids animated show Mira, Royal Detective

MUMBAI: Disney+ Hotstar Premium has added a brand new title to its expansive kids catalogue: Mira, Royal Detective. The story revolves around Mira, a brave and resourceful girl who is appointed as royal detective by the queen. Together with her friend Prince Neel, a talented inventor, Priya, her...

iWorld Over The Top Services
ONMOBILE takes 25% equity in AI-powered visual retention firm ROB0

Mobile entertainment company OnMobile Global Ltd has acquired 25 per cent equity stake in rob0, through its subsidiary Onmobile Global Solutions Canada Ltd, in exchange for an investment of CAD 1000,000.

iWorld Gaming
When others fire, Dream Sports hires

Sports tech company Dream Sports will hire over 250 employees this year at a time when job losses and pay cuts are part of the new normal due to the Covid2019 pandemic. Out of this 180 would be for Dream11.

iWorld Over The Top Services
Netflix to cancel subscriptions of inactive members

Streaming giant Netflix has taken another step to make the service more user-friendly, by cancelling the membership of inactive subscribers. It will start asking customers who haven’t used its platform in the past year if they want to keep their subscriptions.

iWorld Over The Top Services
Disney+ Hotstar announces ‘Home Dancer’ online dance competition

MUMBAI: Premium streaming platform Disney+ Hotstar has announced a first-of-its-kind online dance competition: Home Dancer. As people across India remain confined to their homes, Disney+ Hotstar is gearing up to offer a unique opportunity for dance lovers to showcase their moves from the comfort of...

iWorld Over The Top Services
Future Today launches on Cox TV platforms

OTT publishing platform Future Today has announced a new distribution deal with the recent launch of Fawesome, HappyKids and FilmRise channels on Cox Contour TV and Contour Stream Player.

iWorld Over The Top Services
DE-CIX India's cloud exchange service to benefit M&E industry

While cloud computing practices are taking on the online ecosystem, neutral internet exchange operator DE-CIX India launched its direct cloud exchange service in the country recently.  It is looking forward to go beyond peering and aims to bring its customers more value for the service.

iWorld Over The Top Services
Thailand PM leads national committee to promote 5G development

MUMBAI: A 26-member national 5G committee has been formed with Thailand Prime Minister Prayut Chan-o-cha as chairman to coordinate the 5G development and boost the digital economy in the country. The committee is also tasked with mitigating obstacles regarding the recall of unused spectrum, from...

iWorld Telecom

Sign up for our Newsletter

subscribe for latest stories

* indicates required