Facebook to spend $10M for Zuckerberg's private jet and security

Facebook to spend $10M for Zuckerberg's private jet and security

In fact, about 175 companies in the S&P 500 are worth less than the $15.9 billion that vanished from the fortune of the Facebook Inc.co-founder as shares of the social-media giant plunged 19 percent Thursday.

It was the second time Facebook stock took such a dramatic plunge.

According to the complainant, the marketplace was "shocked" when "the truth" began to emerge on Wednesday from the Menlo Park, California-based company.

At least 16 brokerages cut their price targets on Facebook after managers said the cost of improving privacy safeguards, as well as slowing usage in the biggest advertising markets, would hit the company's profit margins for more than two years.

So far, three class-action suits have been filed by shareholders claiming that Facebook made false and misleading statements to investors including lack of disclosure around monetization associated with Instagram Stories.

Both the slower growth forecast and heavier spending reflect problems largely of Facebook's own making.

Facebook loses $120 billion in value in a day

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. Since then, many have been consolidated in the federal court in San Francisco.

Facebook investors are suing the social network, its CEO Mark Zuckerberg and CFO David Wehner after a poor earnings report wiped out almost $160 billion of shareholder wealth.

Zuckerberg even noted during a call with analysts that "we're investing so much in security that it will significantly impact our profitability".

"There's a bit of concern perhaps growing that the bloom's off the rose for these tech stocks, that they are not invincible", said Tim Ghriskey, chief investment strategist at Inverness Counsel in NY.

Facebook reported strong earnings for the April-June quarter on Wednesday.

Shares in Alphabet closed up 0.7%, while those in Apple fell 0.3% and Netflix closed barely higher.

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