Facebook's $151-billion rout could rewrite the history books - TechCentral

Facebook’s $151-billion rout could rewrite the history books

Facebook has racked up plenty of milestones in its pioneering journey. Now the social media giant is poised to add one it would doubtless rather avoid: the biggest stock market wipe-out in American history.

That could happen on Thursday if the 24% tumble in Facebook’s stock in after-hours trading is replicated in the regular New York session. Its market capitalisation plummeted late on Wednesday, at one point by about US$151-billion, as sales and user growth disappointed investors. A move of that magnitude on Thursday would likely be the largest ever loss of value in one day for a US-traded company.

The following is a look at some of history’s other notable one-day share slams, considering American firms that were worth at least $150-billion in any year over the past decade:

Back in the depths of the tech bust, Intel lost about $91-billion on one September day in 2000. Exxon Mobil, already reeling from the financial crisis and recession in October 2008, lost $53-billion one wretched Wednesday that month. And the slowest profit growth at Apple in 10 years triggered a loss of almost $60-billion on 24 January 2013.

Facebook ended the after-hours session down 20% at $173.50, a loss of about $126-billion in market cap, having declined as much as 24% earlier.  — Reported by Adam Haigh and Garfield Reynolds, (c) 2018 Bloomberg LP

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