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.

Vladimir Putin invites Donald Trump to Moscow
Lemire asked whether Trump would, "with the whole world watching", denounce Russia's interference in the 2016 presidential campaign.

Related Articles

  • Israeli Forces Raid Al-Aqsa Mosque After Clashes

    Israeli Forces Raid Al-Aqsa Mosque After Clashes

    When IDF soldiers attempt to board the ship, they were violently attacked by the crew. Two boats remained behind after a recent stop in Palermo.
    Facebook blocks Alex Jones for 30 days

    Facebook blocks Alex Jones for 30 days

    Jones is perhaps best known for falsely claiming the 2012 massacre at Sandy Hook Elementary School was staged by actors. The videos that led Facebook to impose the short posting ban are believed to be the same ones that led YouTube to act.
    Meghan Markle Approves of Priyanka Chopra and Nick Jonas' Engagement

    Meghan Markle Approves of Priyanka Chopra and Nick Jonas' Engagement

    Due to the engagement, the actress quit Salman Khan's Bharat , which was meant to be her Bollywood comeback after two years. The words, " Priyanka Chopra and Nick Jonas are engaged" has created a storm on the national as well as worldwide tabloids.
  • Kevin Durant Responds To CJ McCollum's Criticism On Twitter

    Kevin Durant Responds To CJ McCollum's Criticism On Twitter

    Does he care about outsiders' opinions? What do you mean why am I mad about this stuff? But I see what you doing. McCollum is one of the most insightful athletes in the National Basketball Association today.
    Thomas' transformation into grand tour rider is complete

    Thomas' transformation into grand tour rider is complete

    I'm going to try to enjoy today, and certainly tonight!" "But, then you know, just realising I've won the tour is just insane ". Something changed late past year when Thomas realised that a career spent in service was likely to leave him unfulfilled.
    Liverpool and Man United level at the break as Mané converts penalty

    Liverpool and Man United level at the break as Mané converts penalty

    Andreas Pereira provided a highlight for Manchester United when he scored on a well-placed free kick in the first half. Liverpool manager Jurgen Klopp was full of praise for Xherdan Shaqiri's first Reds impression on Saturday night.
  • MDC alliance leader casts his vote

    MDC alliance leader casts his vote

    He is a citizen."Elections under Mugabe were marred by fraud and often deadly violence, and this year's campaign has been dogged by accusations the result will be rigged".
    State regulators move to order Charter out of NY

    State regulators move to order Charter out of NY

    Charter is ordered to file within 60 days a plan with the commission to ensure an orderly transition to a successor provider (s). Charter Communications is the largest broadband communications company and second-largest cable operator in the nation.
    Alexandria Ocasio-Cortez Makes Republicans Go INSANE

    Alexandria Ocasio-Cortez Makes Republicans Go INSANE

    Ron DeSantis of the new Democratic breakout star from NY . "And that was reflected in the donors", Trent said. Ocasio-Cortez has caused a stir in Democratic politics since her surprise victory.
  • At least 10 dead as 6.4 quake hits Indonesia

    At least 10 dead as 6.4 quake hits Indonesia

    An official from Mount Rinjani National Park said more than 500 hikers and their guides were stranded. He said at least 162 people were injured, including 67 who were hospitalized with serious injuries.
    Palestinian teen activist Ahed Tamimi released by Israel

    Palestinian teen activist Ahed Tamimi released by Israel

    Earlier in the day the teen held a brief press conference, to address the waiting press, after her release from Israeli custody. Abbas, after meeting Ahed on Sunday, called her "a symbol for the Palestinian struggle for freedom and independence".
    At least 74 dead as wildfires rage near Athens - English

    At least 74 dead as wildfires rage near Athens - English

    Dozens of firefighters were battling the flames aided by helicopters and planes dropping thousands of gallons of water. The fires broke out Monday and tore through a coastal area northeast of Athens popular with tourists and beachgoers.