Facebook stock plunge: Brief setback or portent of trouble?
NEW YORK (AP) – Thursday’s massacre of Facebook shares, which plunged 19 percent in the biggest one-day drop in history, answers one big question. Turns out the stock can fall every bit as fast as it rises.
But others await. Is this a temporary setback for the giant social network, or the start of a painful new journey? And does it portend similar trouble for other high-flying tech giants?
The Thursday stock collapse vaporized $119 billion of the company’s market value. CEO Mark Zuckerberg saw his net worth fall by roughly $16 billion as a result.
FILE – In this March 29, 2018, file photo, the logo for Facebook appears on screens at the Nasdaq MarketSite in New York’s Times Square. 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. (AP Photo/Richard Drew, File)
Facebook continues to grapple with big existential questions, ranging from privacy to tech addiction to how it deals with fake news and extremism.
Both the slower growth forecast and heavier spending reflect problems largely of Facebook’s own making.
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