It was the company’s worst trading day since going public in 2012, and among the biggest one-day losses of market value in U.S. stock market history. In one day, just the decline in Facebook’s market value is roughly the entire market value of McDonald’s or Nike. Facebook’s margin fell to 44 percent in the second quarter from 47 percent a year ago as it spent heavily on security and initiatives to convince users the company was protecting their privacy. The company still has a total market value close to $511 billion, which exceeds the annual gross domestic product of countries like Poland, Belgium and Iran.
Facebook Chief Executive Mark Zuckerberg’s fortune took a more than $15 billion hit on Thursday, which is iroughly equal to the wealth of the world’s 81st-richest person, currently Japanese businessman Takemitsu Takizaki. MoffettNathanson analysts called the company’s forecast “either the new economic reality of their business model or a very public act of self-immolation to stave off further regulatory pressure”. In the U.S. and Canada, Facebook’s daily active users remained flat sequentially at 185 million, while the number actually fell in Europe, falling to 279 million, down from 282 million.