Facebook could potentially lose $151 billion in market capitalization when trading opens on the New York Stock Exchange on Thursday, 26 July. According to a report by Bloomberg, the 24 percent drop in Facebook’s share valuation in after-hours trading is likely to be replicated in the normal trading session, which will cause Facebook’s market capitalization to take a massive hit. Also Read - Apple warns users to remove webcam cover from their MacBook laptopsAlso Read - Facebook SDK causes problems in iOS apps: Report
This drop is likely to be the biggest single-day loss in modern times, and will also be the first time any company has lost over $100 billion in a single day of trading. The big loss comes after Facebook reported weaker revenues and user numbers in Q2 of 2018, the first significant drop after the big privacy scandals that hit the American social media and advertising giant. Also Read - OnePlus Buds India launch teased, to go on sale via Amazon India
Earlier this year, Facebook was embroiled in the Cambridge Analytica scandal, and took big steps to make the platform more personal and secure immediately after. These moves have likely impacted Facebook’s earning projections and user numbers, which led to the 24 percent reduction in its stock value.
The previous record drop was by Intel in September 2000, when it lost $91 billion in market capitalization. With the exception of Exxon Mobil and General Electric, all of the other big drops have been experienced by tech companies, including Apple, Microsoft, Alphabet and Amazon. While the company may regain that market capitalization over time, for now it’s worth much less than it was.
WATCH: Honor 9N First Look
This entire affair will also see Mark Zuckerberg lose a chunk of his net worth, after he climbed to become the third-richest person in the world earlier this month. Meanwhile, Amazon continues to march on towards its goal of being the first company to cross a $1 trillion market capitalization.