Facebook experiencing the largest decline in value of US stock market history / Article / LSM.LV

Never in the history of US stock markets, has any company lost more than $ 100 billion a day. Eighteen years ago, tech giant Intel and Microsoft were losing 90 (77.36 billion euros) and 80 billion dollars (68.77 billion euros) respectively during the day, but now Internet giant Facebook broke the record with a spectacular strike – The value of the company fell $ 119.4 billion during the day

On Facebook, Wednesday, the market value was nearly $ 630 billion ($ 541.55 billion), but Thursday, late evening, $ 4 billion)

This decline in value is due to daily financial data for the second quarter of the year. Although profit margins increased by 40% during the year, company representatives acknowledged that profits are not as fast as expected and that similar trends should be maintained over the course of the year. next quarters. It is also noted that Facebook plans to increase spending by about 50% in order to improve content tracking, test advertisers, and the processing of personal data. It is precisely these three spheres that have recently been criticized by various supervisors, including the European Union

However, the most likely failure factor is the poor indicator of routine users.

The company warns investors that the decline in profits

According to Marks Teppers, the financial services firm and investment management Cowen, the CNBC television company, the advertising services offered by Facebook are not not as impressive as those of other competitors.

"If we look at the social network platforms, then that's where young people stay and where unpredictable sums are exchanged. This gives you huge opportunities in the long run. But the shares of all major companies are trading at a high price, and they are entirely dependent on an astronomical increase in the number of new users, "says Teppers." In fact, the company pays for growth, who can or can not be. As an entrepreneur, I can say that I have tried to advertise on different platforms – Facebook, Google, Twitter, Instagram and others. Facebook was supposed to be the platform supposed to produce the best results. But the results are certainly not so impressive, "Teppers is critical."

Other experts point out that investors may have reacted too abruptly because Facebook is still considered one of the most reliable companies for long-term profit. Still others are convinced that in the current situation, a more appropriate technology company for investment would be another Internet giant, "Alphabet", owner of sites such as Google and Youtube, whose the benefits are much more optimistic.

Several other technology companies were also affected by the devastation. For example, the value of Twitter shares has decreased by about 3%. This company has faced the same criticisms as Facebook and its financial indicators are about to be released today. The shares of the alphabet have decreased, but less than 1%.