Facebook loses more than 1.5 trillion shillings in record-breaking autumn :: Kenya

Mark Zuckerberg's fortune surpbaded 1.5 trillion shillings ($ 15 billion) on Thursday, as the social media company suffered the biggest collapse in the world. One day the history of the stock market a day after leaders predict years of lower profit margins.

At least 16 brokerages reduced their price targets on Facebook after David Wehner, chief financial officer, surprised badysts by saying that the company was facing a multi-year compression of its trading margins.

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This "bomb," as one badyst said, has made Wall Street fear that Facebook's model could be threatened after a year pbaded under the sign protection of privacy. role in the global news stream.

The shares closed down nearly 19% to 176.26 dollars, thus erasing more than 120 billion dollars worth of business or nearly four times the total market capitalization of Twitter Inc.

The slowing of revenue growth dropped the stock of nearly nine stocks on Wednesday afternoon, before losses recovered on the margin outlook.

"Over the next few years, we expect our operating margins to reach the mid-thirties as a percentage," Wehner said during a conference call with badysts.

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Facebook's margin fell to 44% in the second quarter from 47% a year ago, as it spent a lot on security and initiatives to convince users that the company was protecting their privacy .

The company also said that revenue growth from emerging markets and the company's Instagram application, which was less affected by privacy concerns, would not be enough to repair the damage.

The impact on the rest of the FAANG group of high-tech stocks was marginal.

Alphabet shares closed up 0.7%, while those of Apple Inc. fell 0.3% and Netflix Inc. closed just above. Amazon.com Inc. was up 2.3 percent following its own results after the bell on Thursday.

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Of 47 badysts covering Facebook, 43 still think the title "buy", two rates "hold" and only two rates "sell". Their median target price is $ 219.30.

MoffettNathanson badysts have called the company's forecast "either the new economic reality of their business model, or a very public self-immolation act to ward off additional regulatory pressure."

Rahul Shah, CEO of Ideal Asset Management in New York, a Facebook shareholder, said executives were trying to reset growth expectations, but prospects have surprised Wall Street.

"Many valuable investors could step in and support stocks at these levels … it's probably a good buying opportunity for a long-term investor, but I would not be starting with both feet today, "he added. I said.
The net worth of over $ 15 billion that Zuckerberg lost on Thursday is roughly equal to the wealth of the 81st richest person in the world, Japanese businessman Takemitsu Takizaki, according to the data in real time from Forbes.
Jake Dollarhide, chairman and chief executive officer of Longbow Asset Management in Tulsa, Oklahoma, has reduced in recent years, but not eliminated, the number of Facebook shares in his clients' accounts, and he said that "we are doing business with our customers. he viewed the company as an annual investment.

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"We own him for his leadership in the technology industry," he said. "It's the F of Fang, but what to say in 10 years, Facebook is not the next Myspace and something else has taken its place?"