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Facebook CEO Mark Zuckerberg Loses $16 billion in 5 minutes

Mark Zuckerberg, founder and CEO of Facebook, saw his fortune amputated nearly 16 billion dollars (14 billion euros) in five minutes Thursday with the fall of 20% of the share price of the social network, which warned the watch over the future decline of its margins in the coming years.

The company posted weaker than expected results in the second quarter and released indications that its financial future is not as rosy as some investors thought.


Facebook action has fallen by nearly 20% in the first trade to $ 174.78 at a low, a price corresponding to a loss of valuation of the company of about 124 billion dollars, the equivalent of the total capitalization of Twitter, more than that of L’Oréal and more than the gross domestic product of a country like Morocco. 
In this context, a shareholder would like Mark Zuckerberg to no longer be the chairman of the company.

The boss of facebook could therefore move to sixth place Bloomberg Billionaires, a ranking of the 500 richest people in the world. That would also wipe out his $ 13. 7 billion gains for the year, leaving it with about 71 billion dollars.


And for Zuck, the torments are not over, this Wednesday the largest social network in the world has admitted that investments in new products or formats, such as the Stories, had weighed on the growth of the group’s revenue. Even worse, revenue growth will slow to below 10% over the next two quarters, Facebook’s chief financial officer, David Wehner, told investors on a conference call.

The Fake News remain an ongoing struggle for the social media giant. Facebook has also been involved in the investigation into Russia’s presumed interference in the 2016 presidential election.

Zuckerberg acknowledged that the number of monthly users had also fallen in this market. This may be partly due to the entry into force of the General Data Protection Regulation (GDPR). But, another part might be due to a loss of confidence with regard to Facebook itself.

In the United States and Canada, Facebook’s daily active users have remained stable at $ 185 million, while the number has declined in Europe from $ 282 million to $ 279 million.

Citing “mismanagement” of a number of crises, an activist investor has tabled a proposal to have Zuckerberg removed from his position as president of the company, reports Fortune.


Written by How Africa

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