Mark Zuckerberg’s fortune tumbles $16.8 billion in a day

Mark Zuckerberg running in Delhi IndiaFacebook

Mark Zuckerberg running in Delhi IndiaFacebook

The Facebook CEO was worth a mere $66.8 billion on Thursday afternoon according to Forbes, one day after the company's earnings call sent Wall Street into a selling tizzy. For Mark Zuckerberg, it's just about a fifth of his net worth.

In the second quarter, Facebook lost roughly 1 million monthly users, and 3 million daily users in Europe.

Investors have been anxious about the continuing brand damage the Cambridge Analytica data hacking scandal is taking on Facebook, a day after it revealed three million European users had stopped using Facebook.

Previously ranked the third richest man in the world, Zuckerberg now finds himself at number six with a personal fortune of $67.1 billion.

Total revenue rose 41.9 percent to $13.23 billion. Investors were spooked by forecasts form the company that revenue growth would continue to decelerate. The stock was down 17 per cent at US$181.25 in premarket trade Thursday, after having closed at US$217.50 in regular trading. It reported second-quarter results on Wednesday afternoon.

Young investors are betting that Facebook's earnings disaster and subsequent stock landslide are presenting a buying opportunity to get the stock at an attractive valuation.

"Bears win this quarter. but not the war", said Brent Thill, an analyst with Jefferies. The company's user base flatlined in its biggest market, the U.S. and Canada, at 185 million daily users, while declining 1 per cent in Europe to 279 million daily users. Almost all social media services have received greater scrutiny since United States intelligence agencies in January 2017 revealed that organizations tied to the Russian government had seeded content on the platform to shake up the 2016 USA presidential election.

In a research note, he said Facebook´s outlook "suggests that while the company is still growing at a fast clip, the days of 30 percent-plus growth are numbered". But most experts believed the company had successfully dealt with them.

Investors were also concerned by figures which showed the number of active users has also grown less quickly than expected.

This was up 11 per cent on June 2017, the slowest growth in more than two years.

The company also said that revenue growth from emerging markets and the company's Instagram app, which has been less affected by privacy concerns, would not be enough to fix the damage.

The company also said for the first time that 2.5 billion people use at least one of its apps each month, including the core Facebook service, Messenger,

Until now, he said, there was a sense that the vast majority of users didn't fully understand Facebook's business.

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