SALT LAKE CITY — Facebook's stock value suffered the worst loss in U.S. stock market history Thursday, capping off what's been a rough couple of months for the social network.
On Thursday afternoon, Facebook watched its capitalization drop by $119 billion, lowering its valuation to $510 billion, which represents a 19 percent drop, according to CNBC.
Facebook’s valuation stood at $630 billion at Wednesday’s closing bell.
No company has ever dropped that much in history. Intel came close in September 2000 when it fell $90.7 billion. Microsoft dropped $80 billion in 2000 as well.
The drop came after the company announced Wednesday it had weaker revenue than expected. The company said its daily active users dropped as well.
“This is a privacy wake-up call that the markets are delivering to Mark Zuckerberg,” said Jeffrey Chester of the Center for Digital Democracy, a privacy advocate, according to The Washington Post.
Zuckerberg, Facebook's CEO, lost $16 billion in net worth due to the drop, according to Fox News.
Facebook said it doesn’t expect to see revenue growth for a while, according to CNBC.
For a while, Facebook had avoided a stock market plummet despite the wealth of bad news surrounding the company in recent months, according to Wired.
The company has faced tremendous scandals from both the Cambridge Analytica debacle and many questions from users about fake news and misinformation.
But Facebook’s pledge to prove itself to be a force of good in the world will limit it from reviving its revenue, which has worried investors.11 comments on this story
“Facebook’s stock has proven impervious to all manner of bad news, so it may quickly rebound,” according to Wired. “But the news also left little room for anyone doubting how serious the company is about restoring its reputation as a force for good.
"Founder and CEO Mark Zuckerberg has said that he has no intention of letting Facebook become a platform known for celebrating humanity’s worst impulses. It appears he plans to put more money than anyone expected behind that pledge.”
Facebook will begin putting money into making sure the platform begins to grow again, according to Wired.