Facebook Stock Drops – Right in history, Facebook’s stock saw the biggest one-day drop on Thursday, with $119 billion wiped off of its financial value after the company reported slower-than-expected revenue growth for the second quarter of the year 2018.
The company has gone to say it expects declines to continue in the second half of the year. The giant Menlo Park, California-based social networking company also showed signs of sluggish user growth.
With shares down 3.2% in morning trade, Facebook Inc. FB, +0.11% has entered bear-market territory. The stock has now fallen 22% from its record close of $217.50 on July 25, and will officially be in a bear market if it closes at that level.
Many chart watchers say a new bear market starts after a fall of 20% or more from a bull-market high. Shares of Facebook sold off 19% in Thursday’s session after the company delivered a sharp warning about its future revenue growth, and the stock dropped another 0.8% in Friday’s session.
Facebook’s stock is down 2.7% so far in 2018, while the S&P 500 SPX, -0.58% has gained 5.3%.