Facebook just had its worst week in the company’s history

Facebook stock had its worst day ever

Facebook stock had its worst day ever

The market capitalization of the social-networking giant was down by as much as $148 billion before recovering a bit later in the day.

Some shareholders are now saying co-founder and CEO Mark Zuckerberg is part of the problem.

The fallout comes after the company's announcement that growth might slow after "an avalanche of scandals involving misinformation and data misuse".

The proposal by Trillium Assets Management, which manages about $11 million in Facebook stock, said an independent chairman is needed to break up Zuckerberg's conflicting dual role as chairman and chief executive officer.

Facebook's ongoing struggle with producing fake news also continues to add to its woes.

The stock slide began right after Facebook reported second-quarter results after the market closed Wednesday.

Facebook said it had 1.47 billion daily active users in June, compared with the 1.48 billion average of analysts' estimates compiled by Bloomberg.

As ever with the stock market, share prices reflect the balance of supply and demand for the individual shares in question.

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"The company has a track record of resetting revenue growth and expense expectations only to turn around and exceed those expectations the following quarter", said Gene Munster of Loup Ventures. Facebook warned that its operating margins would fall from its current 44 percent to the "mid-30s".

Facebook's shares recovered somewhat after the call. On Thursday, shares opened down 18 percent, wiping more than $100 billion off of its market value.

"People that believes in God, people that believes in our Constitution, people that even creates patriotic songs - they want to get rid of that stuff". The company's user base flatlined in its biggest market, the US and Canada, at 185 million daily users, while declining 1 per cent in Europe to 279 million daily users. Its overseas revenue got a boost in dollar terms as the dollar appreciated against other currencies a year ago.

Before the results were announced, Facebook's shares had closed in NY at $217.50, a record high, and had gained 23% this year.

Facebook shares plunged more than 19 percent Thursday after the company warned the day before that its sales growth would stall in the months ahead. That will put a drag on sales because Facebook makes more money on its core News Feed than its other products.

The disappointing results came after Facebook has been embroiled in a data scandal affecting millions of users.

The sudden drop also amounted to a test of investor faith in the class of giant, technology-focused stocks that have carried the market for much of the year.

Rahul Shah, chief executive officer at Ideal Asset Management in NY, a Facebook shareholder, said executives were trying to reset expectations about growth but the outlook caught Wall Street by surprise.

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