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How does Facebook Stock collapse a record setter with earnings meltdown?   


Liam Davis
@Liam.Davis · Posted 04 Feb. 2022


Alfred Evans
@Alfred.Evans · Updated 04 Feb. 2022

Mark Zuckerberg’s fall from grace as the king of the stock market was historic. The Facebook (FB) founder and CEO are now in the record books as the biggest loser of the day, with a loss of more than $19 billion. The previous record for the biggest daily decline was set in 2008 when Warren Buffett’s Berkshire Hathaway lost $17.1 billion in just over two minutes. The decline in Facebook shares was the biggest point decline in the S&P 500 index’s history. Mark Zuckerberg’s social network lost more than $120 billion in market value in a single day this week as the company reported earnings that missed expectations. But Facebook’s stock collapse is just the latest in a series of record-breaking declines for the stock market. The broader market is now in its longest slump on record. And while the severity of this slump is unusual, it isn’t unprecedented. On Tuesday, the stock market suffered its worst day in years. Facebook was the worst-performing stock in the US, dropping 10% in after-hours trading.


Kelly Jackson
@Kelly.Jackson · Updated 04 Feb. 2022

When the Nasdaq Composite Index had a 1,000% gain between 2001 and 2007, investors were quick to compare it to the dot-com bubble. But when the Nasdaq plunged 50% from 2010 to 2013, the stock market crash was written off as a blip on the radar. That changed on Friday when Facebook (NASDAQ: FB) stock hit a record low, wiping out $119 billion in market cap in a single day. The collapse of the social media giant is a textbook earnings meltdown, as investors punish a company for not meeting expectations on the latest financial reports. The stock market has been on a wild ride this week. The Dow Jones Industrial Average dropped more than 1000 points on Thursday, the biggest point drop ever. The NASDAQ also tumbled, and a broad market sell-off has spread to other major stock markets around the world. It wasn’t supposed to be this way. The drop is a record-setter for a company with earnings on the line, and it comes on the heels of a major earnings report that missed expectations. The company’s revenue missed estimates, and its user numbers were weaker than expected.


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