Facebook suffered the biggest stock market wipeout in American history. The social media giant lost $123 billion from its valuation. Over the last decade Facebook has achieved many milestones and was considered a poster boy for success in the competitive American technology sphere. This latest drop in value could mark a turning point in the company’s history.
However, this news comes in the wake of poor earnings and is not the result of data scandals or election influencing. While many observers agree that the low earnings may very well be a result of a dwindling user base which in turn was the result of the recent bad press, such a steep drop in valuation is indeed alarming. To get a perspective, let’s have a look at the valuation of some of the most recognizable companies in America.
McDonald’s is valued at $130 billion, while L’Oreal Group is at $134 billion. Meanwhile Twitter’s valuation is at $31 billion approximately and Snap Inc. is at $16.6 billion. Facebook’s loss is indeed staggering. In a move that attempts to change the narrative, Facebook published a metric that shows its family of apps, namely Facebook, Instagram, Messenger and Whatsapp. Additionally, it also pointed out that 2.5 billion people use atleast one of the four. It remains to be seen how Facebook will deal with this crises.