Zuckerberg loses $16 billion in record Facebook fall

Mark Zuckerberg loses $17bn in a day & some investors want him fired as Facebook chairman

The $15.8 billion in net worth that Zuckerberg stands to lose in the move is equal to the wealth of the world's 81st-richest person, now Japanese businessman Takemitsu Takizaki, according to Forbes real time data.

The loss is the biggest one-day wipeout of individual wealth ever recorded on the ranking, which started tracking the world's biggest fortunes in 2012.

Facebook's prodigious growth has experienced its slowest quarter since the platform went public, with the social network losing users in Europe and missing analysts' revenue projections amid the Cambridge Analytica scandal and the implementation of GDPR.

Facebook CEO Mark Zuckerberg's net worth plummeted more than $15 billion with the stock dive, although it's still around $67 billion, according to Forbes' real-time net worth tracker. The GDPR has also forced several changes to Facebook's privacy terms and sign-up process, leading to some users to opt for non-personalised adverts, which generates less revenue.

"We continue to focus our product impact on putting privacy first, and that's going to have some impact on revenue growth", said Facebook chief financial officer David Wehner on the earnings call.

At one point during the call, Facebook shares were trading down as much as 24 percent, an unprecedented drop for a large firm.

Its gloomy forecast for revenue growth surprised investors, though, and prompted many questions from financial analysts on a conference call with company executives on Wednesday. It ended the quarter with $42.3 billion in cash and equivalents.

More news: HPV jab will be given to boys in England, gov't confirms

"We think that's the right thing to do for the business", he said.

The second-quarter results were the first sign that a new European privacy law and a succession of privacy scandals involving Cambridge Analytica and other app developers have bit into Facebook's business.

Facebook's shares had earlier closed in NY at US$217.50, a record high, and had gained 23 per cent this year. "It just seems like the magnitude is beyond anything we've seen".

Nearly all of Facebook's revenue - $13 billion of the total $13.2 billion - came from online advertising, a sector dominated by the California social network along with Silicon Valley rival Google.

Facebook had 2.23 billion monthly users as of June 30, up 11 percent from a year earlier.

Media analyst Michael Nathanson raised the possibility of Facebook engaging in "a very public act of self-immolation" to stave off regulation, both in the USA and in Europe, which just imposed tougher new privacy rules. That will also give an update on the personal hit to Zuckerberg.

However, the company faced trouble growing its user count in its two biggest markets, Europe and the US. This week, Colin Stretch, who led Facebook's investigation into Russian election interference and who testified before Congress last year on Facebook's behalf, said he would leave the company by the end of the year.

Related News:

Most liked

United States and European Union agree to ease tensions over trade disagreements
Daimler (DAIGn.DE) was up just 1.03 percent in volatile trade at 0915 GMT after its second-quarter profit was hit by weaker pricing and tariffs.

Liverpool’s Klopp appeals for calm as excitement mounts over signings
Given that a glut of new talent has arrived at Anfield this summer there could be some movement in the opposite direction for some of the club's fringe players, with several members of the squad linked with moves elsewhere.

Canada seeks united front with Mexico in NAFTA talks
President Donald Trump mused publicly - not for the first time - about striking a deal with Mexico separately from Canada. President Donald Trump past year , has taken on a renewed sense of urgency since Lopez Obrador's victory.

TMZ: Demi Lovato found unconscious in her bed after ‘partying all night’
A source told TMZ they confronted her about her actions, and tried to offer her help in a bid to get back to sobriety. Lovato's publicist did not immediately return a message Thursday about the call or an update on Lovato's condition.

Maui Jim Maui Invitational bracket unveiled
Arizona (2014), Duke (2011) and IL (2012) each return to Maui having claimed the Tournament title in their most recent appearance. Gonzaga and IL have both won the Maui Jim Maui Invitational - the Illini doing so in 2012, and GU taking the title in 2009.

Zoo accused of painting donkeys to look like zebras
Since the photos went viral, a number of vets in the country were quick to confirm that the animal was indeed a donkey. In 2009, a zoo in Gaza did the same thing, saying that it could not procure real zebras due to an Israeli blockade.

US senators push sanctions to send Putin message on election interference
Collins, a member of the Senate Intelligence Committee, said that doing more to deter the Russians is a necessity. They are planning to hold additional hearings in the coming weeks.

Mercedes-Benz unveils A-Class sedan bound for Canada
One big talking point of the vehicle is its drag coefficient which Mercedes claims is better than any auto now on sale today. Its 420-litre boot capacity, however, doesn't quite match the 425 litres of the smaller A3 saloon.

White House bans CNN reporter from press event for 'inappropriate' questions
The White House statement issued yesterday said Collins was "informed...she was not welcome to participate in the next event". Sometimes they shout to make sure the president can hear the question. "You ask her if we ever used the word ban".

Ergoğan, Netanyahu Trade Barbs Over Israel's New Nation-State Law
Reacting to Erdogan's comments, Israel's Prime Minister Benjamin Netanyahu said Turkey was becoming " a dark dictatorship ". Netanyahu hits back at Erdoğan after he compared Israel's nation-state law to Nazi legislation.

A distant black hole just proved Albert Einstein was right
Astronomers followed S2 before and after it passed close to the black hole on 19 May 2018, tracking its progress hour-by-hour. Even though the radio source was discovered in 1974, the name Sgr A* didn't come around until 1982.

Andromeda galaxy 'ate' Milky Way's long-lost sibling
This hypothesis allows to explain the origin of dwarf elliptical galaxy M32 (companion of M31), which is itself unusual. Because of that, it's not unusual for a galaxy of that mass to effectively cannibalize other nearby galaxies nearby.

Dimitar Berbatov backs Man United and Tottenham to finish above City
How can you be happy? "The target is win the next game and how to prepare to win the game, that is the target". I don't care, of course, but in the moment all is fine and of course he is what we saw past year .

Your favorite California wine may contain radioactive particles - from Japan
Now a group of French nuclear physicists say they have stumbled on Fukushima's signature in Northern California wine. A magnitude 9.0 quake hit northeastern Japan on March 11, 2011, triggering a massive tsunami.

European Union threatens tariffs on $20 billion of U.S. goods
This will involve increasing USA exports of liquefied natural gas and soybeans to Europe, which Trump claimed was a "big deal". Both parties have promised not to go against the spirit of this agreement, unless either one terminates the negotiations.