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Facebook sends Nasdaq tumbling, registers biggest ever daily percent drop

Facebook sends Nasdaq tumbling, registers biggest ever daily percent drop
By Louise Miner with Reuters
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Facebook sends Nasdaq tumbling with biggest ever daily percent slump.


Facebook's stock collapse sent the Nasdaq down more than 1% on Thursday — the index's biggest one-day drop in a month.

The tech's company shares dived 19.0% — their biggest ever one-day percentage drop — after the social media giant forecasted years of lower profit margins. The decline in Facebook shares weighed on the S&P 500 technology index, which dropped 1.6 percent.

The recent EU fines, a new EU privacy law and a succession of privacy scandals have hit into Facebook's business.

The plummeting stock price wiped out as much as €102 billion ($120 billion) in market capitalization.

Facebook says North American daily active users (DAUs) remain at 185 million.

But it lost users in Europe for the first time. Figures fell to 279 million in the second quarter from 282 million in the previous period.

It's after executives say profit margins will plummet for several years because of the costs of improving privacy safeguards and slowing usage in the biggest advertising markets.

In the second-quarter, total expenses of these efforts, surged to €6.3 billion, ($7.4 billion) which is up 50 percent compared with a year ago.

These costs are likely to continue into the second half of the year.

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