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The fortune of Facebook's CEO, Mark Zuckerberg was reduced this Thursday by nearly $ 16 billion, while the social network was heading toward its largest daily decline in history ] The US stock market after forecasts of lower future profit margins are known.
At least 16 brokerages lowered their price targets for Facebook after corporate executives said the cost of improving backups Privacy as well as slowing down use in major advertising markets would affect profit margins for more than two years.
At 10:47 am in Mexico City, Mark Zuckerberg shares fell 18.48% to $ 177.30.
On Wednesday, the shares of the platform had a "collapse" of up to 24% after the close of the market and Zuckerberg's fortune reached $ 16.8 billion.
The results of Facebook in the second quarter were the first sign that the new European law on privacy and the scandals concerning the processing of customer data by the firm Cambridge Analytica and several application developers affect the company's business.
Facebook also warned that the impact will not be offset by revenue growth in emerging markets and its application Instagram less affected by privacy concerns.
After describing the ads as "bombs," Baird's analysts said the problems were, to a large extent, "self-inflicted," since Facebook is sacrificing its significant activity of monetizing applications to boost the numbers. 39; use.
Of the 47 analysts who cover Facebook, 43 qualify the action to "buy," two opt to "maintain" and two others opt to "sell." Its average price target is $ 219.30.
Analysts of MoffettNathanson rated the company's forecast as "the new economic reality of its economic model or a very public self-immolation act to get rid of" 39, greater regulatory pressure ".
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