Quarter 2 earnings reports have been, for the most part, successful for most companies. With the dollar index rising, it seemed like good fortune was to come for some of the largest names in the stock business. Unfortunately, Mark Zuckerberg seems to have struck out, as Facebook took its largest plunge in history.
A 20% drop in stocks is nothing to shake your head out. Even for the biggest NASDAQ newbie, that’s a whopping number. In total, the social media mogul that is Facebook has lost almost $120 billion in market value. Investors were warned that this day would come, but Facebook’s “reckoning” was accelerated after the European data breach that occurred earlier this year.
This news could spell an overall drop for tech stocks, specifically the FANG quartet that includes Facebook, Amazon, Netflix, and Google. Additionally, the monthly active users of Facebook is on a steady decline that analysts predict will continue over the next few years. The cost of increasing privacy measures in the EU will be more substantial than their ad revenue, spelling a downfall for our once favorite online platform.
