Zuckerberg loses more than $ 15 billion in Facebook fall record

(Reuters) – Facebook Inc. ( FB.O ) The wealth of Chief Executive Mark Zuckerberg took a hit of more than $ 15 billion Thursday, the social media company having suffered the biggest collapse of a day the market history a day after leaders predict years of lower profit margins.

At least 16 brokerages lowered their price targets on Facebook after David Wehner, chief financial officer, surprised analysts by saying that the company was facing a squeezed margin over several years.

This "bomb," as one analyst said, has made Wall Street fear that Facebook's model could be threatened after a year of effort to dispel privacy concerns and its role in the global flow of news.

(graph: Facebook revenue growth slowdown – tmsnrt.rs/2JV9APu)

Shares closed close to 19% to $ 176.26, wiping out more than $ 120 billion from the value of the company or nearly four times the total capitalization of Twitter Inc. ( TWTR.N ).

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

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

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 lives private.

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

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

The shares of Alphabet ( GOOGL.O ) closed up 0.7%, while those of Apple Inc. ( AAPL.O ) fell by 0.3% and Netflix Inc. ( NFLX, O ) closed barely higher. Amazon.com Inc. ( AMZN.O ) was up 2.3% following its own results after Thursday's bell.

Of 47 analysts covering Facebook, 43 still judge stock as "buy", two rates "hold" and only two rates "sell". Their median target price is $ 219.30.

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

Rahul Shah, chief executive 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 the stock 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 more than $ 15 billion that Zuckerberg lost on Thursday is roughly equal to the wealth of the 81st richest person in the world, currently Japanese businessman Takemitsu takemitsu, according to the Real-time data 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.

"We have 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?"