Does Facebook’s Stock Plunge Really Matter? [VIDEO]
What happened last week with Facebook stock? In the course of a single day, the social media giant had a stock drop of about nineteen percent, which meant a loss to investors of some $120 billion. and, adding insult to injury, Facebook CEO Mark Zuckerberg lost close to $16 billion in the financial bloodletting.
By the end of trading Thursday, it was worth $510 billion after close and 170 million shares had changed hands. Facebook’s Thursday was the ugliest single session decline since the company went public in 2012.
The social-media behemoth’s stock lost roughly one-fifth of its value in the extended session Wednesday. The stock dropped about 7% immediately after the earnings report was released, then plummeted to a loss of more than 20% as a conference call with analysts progressed. Close to 34 million shares changed hands in Wednesday’s extended session, well above the average volume of 17 million shares for a regular trading session over the past month.
101.7 / 710 KEEL's Robert J Wright and Matt Parker talk about the reasons for the decline and is the FB decline a portend for other social media sites. To hear Robert and Matt, start the video at the -1:17:30 mark.