“Facebook Inc Chief Executive Officer Mark Zuckerberg’s fortune took an almost $16 billion hit on Thursday, as the social media giant headed for the biggest one-day wipeout in U.S. stock market history, a day after executives forecast years of lower profit margins,” Reuters reports.
“At least 16 brokerages cut their price targets on Facebook after Chief Financial Officer David Wehner startled an otherwise routine call with analysts by saying the company faced a multi-year squeeze on its business margins,” Reuters reports. “That ‘bombshell,’ as one analyst termed it, played into concerns on Wall Street that Facebook’s model could be under threat after a year that has been dominated by efforts to head off concerns over privacy and its role in global news flow.”
“Shares fell as much as 19.6 percent to $174.78, a decline that if sustained would wipe about $124 billion off the company’s value,” Reuters reports. “Dismal revenue, which initially pulled the stock down nearly 9 percent on Thursday, clearly was not the end for wounded investors. ‘Over the next several years, we would anticipate that our operating margins will trend towards the mid-30s on a percentage basis,’ Wehner told the results conference call with analysts.”
Read more in the full article here.
MacDailyNews Take: Unfotunately, Facebook is like the cockroach. It’ll never die out. The best we can reasonably hope for is that it’ll become the next MySpace. It deserves far worse.
As we’ve written previously, “If you trust Mark Zuckerberg to be the keeper of your photos, contacts, political views, religious beliefs, etc., you’re batshit insane.”
Instant messages sent by Mark Zuckerberg during Facebook’s early days, reported by Business Insider, May 13, 2010:
Zuckerberg: Yeah so if you ever need info about anyone at Harvard
Zuckerberg: Just ask
Zuckerberg: I have over 4,000 emails, pictures, addresses, SNS
[Redacted Friend’s Name]: What? How’d you manage that one?
Zuckerberg: People just submitted it.
Zuckerberg: I don’t know why.
Zuckerberg: They “trust me”
Zuckerberg: Dumb fucks
We use FaceBook as an RSS feed. Our CMS automatically reposts our article headlines and links them back to our website. That is our only interaction with Facebook and has been our only interaction with Facebook for years. We deleted our personal accounts [which we opened only so we could understand the Facebook phenomenon] many years ago.
If you want to share photos and videos with friends, text them using Apple’s end-to-end encrypted iMessage service. You need to control your social networking, not cede it to a gatekeeper like Facebook. – MacDailyNews, March 19, 2018
Facebook stock plunges as users vanish – July 25, 2018
Apple highlights user privacy as Facebook exec steps down – June 14, 2018
The 18 things you may not realize Facebook knows about you: Firm reveals the extent of its spying in a 454-page document to U.S. Congress – June 12, 2018
Facebook confirms sharing users’ personal data with Chinese companies – June 6, 2018
Apple’s macOS Mojave removes integration with third-party internet accounts like Facebook – June 6, 2018
Apple borks Facebook’s pervasive personal data-harvesting operation – June 5, 2018
Apple requested ‘zero’ personal data in deals with Facebook – CEO Tim Cook – June 5, 2018
Facebook CEO blasts Apple’s latest privacy protections as ‘cute virtue signaling’ – June 5, 2018