Facebook founder, Zuckerberg, loses $15bn in one day

Facebook founder, Zuckerberg, loses $15bn in one day

 

Facebook Chief Executive Officer Mark Zuckerberg ’ s fortune took an almost $ 15 bn hit on Thursday , as the social media giant headed for the biggest one- day wipe – out in the United States stock market history , a day after executives forecast years of lower profit margins .

At least 16 brokerages cut their price targets on Facebook after Chief Financial Officer, David Wehner, startled an otherwise routine call with analysts by saying the company faced a multi -year squeeze on its business margins , Reuters reported.

That “ bombshell ” , as one analyst termed it, played into concerns on Wall Street that Facebook’s model could be under threat after a year that has been dominated by efforts to head off concerns over privacy and its role in global news flow .

Shares fell as much as 19 . 6 per cent to $ 174 . 78 , a decline that if sustained would wipe about $ 124 bn off the company ’ s value – or nearly four times the entire market capitalisation of Twitter Inc.

Dismal revenue , which initially pulled the stock down nearly nine per cent on Wednesday, clearly was not the end for wounded investors .

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