Just after Facebook’s stock closed at an all-time high of USD630bn yesterday, its market cap plummeted by USD109bn overnight in the largest plummet the company has seen since its founding in 2004.
Facebook founder Mark Zuckerberg, who had been third on the Forbes Billionaires list, slid down to the sixth position overnight with a USD14.5bn hit to his personal wealth, with a decrease on paper from USD14.5bn to USD86.5bn from Wednesday to Thursday.
With Facebook’s international infamy in the wake of the Cambridge Analytica data leak scandal, the company had warned investors of slowing user growth rates. Total users in Europe alone had tumbled from 282 million to 279 million, motivated by individual fears and ground-up campaigns like #DeleteFacebook of Brian Acton fame.
At the same time, the company warned that internal costs have been rising, due to new sweeping data privacy mandates by governments around the world. These are expected to cause the company’s total expenditure growth to eclipse total revenue growth in the upcoming year.
With comprehensive European Union data protection legislature leading global censure and threats of fines from multiple countries, it seems that Facebook’s unchecked growth might