Facebook Stock Suffers Largest One-Day Drop In History, Shedding $119 Billion 130
Facebook is experiencing one its worst days as a publicly traded company. According to CNBC, Facebook lost about $119 billion of its value on Thursday, marking the biggest one-day loss in U.S. market history. From the report: The company's shares plunged $41.24, or almost 19 percent, to $176.26 a day after the social media giant reported disappointing results. The slide is the largest decline in market capitalization in history, exceeding Intel's $91 billion single-day loss in September 2000, according to Bloomberg data. Founder and CEO Mark Zuckerberg saw his fortune drop by $15.9 billion to roughly $71 billion. His personal loss alone, if only on paper, exceeds the value of companies such as Molson Coors and Macy's, which have market values of $14 billion and $12 billion, respectively. Investors were spooked by Facebook's forecast showing that its number of active users is growing less quickly than expected, while the company also took a hit from Europe's new privacy laws.
Retirement (Score:5, Funny)
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Lol, I wouldn't touch Facebook stock. And certainly don't plan to now. Social media platforms don't last.
Apart from retirement funds, whose stocks I don't pick directly, the only stock I own is TSLA. And it's served me quite nicely, thanks. :) But by all means, get your positions in [youtu.be] - Q2 report coming out next week.
Re: Retirement (Score:2)
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Note that if you can't even follow news properly, you probably shouldn't be messing with investment. The "refund" discussion wasn't with parts suppliers, it was concerning ongoing unfinished capex projects. Capex != parts. And it went out to fewer than 10 companies.
It appears that someone at one of the companies that got the letter thought that it was going out to all of Tesla's thousands of suppliers and thus wouldn't get in trouble for leaking it; the fact that this incorrect was already discovered in th
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Re: Retirement (Score:4, Informative)
Total assets = $27.3B
Total liabilities = $21,6B
Secondly, get your story straight: is Tesla's SG&A too high and they should be cutting back on it, or is cutting back on SG&A spending a sign of doom? You need to pick one story and stick with it.
Third, there is nothing unusual about automakers asking for refunds on ongoing contracts. Unfair? Sure, but welcome to the automotive industry. When you have the bully pulpit, you can get away with things like that.
Lastly, nobody said "forever". But given that they're simultaneously attacking multiple markets each worth hundreds of billions to trillions of dollars, yes, they're only just getting started. Nobody is anywhere close to the rate of EV production scaleup they've achieved this year and are on track to continue in the next coming years. 2-3 years from now that situation may change, given what some established automakers are finally starting to invest in EVs. But until then, Tesla stands alone. It doesn't matter if you're GM, VW, or anyone else - you can't magick Gigafactories into existence overnight.
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Tump's Clean Coal produces CO2?
That's news.
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1) It is far easier to reduce emissions at a single point source like a power plant than it is to maintain low emissions at multiple point sources, particularly since the air quality reviews done on-site for a power plant are far more rigorous than the testing your cousin's muscle car got at "that mechanic shop outside town you can go to for.. you know... muscle car inspections".
1a) It becomes easier to make the case to switch that power plant to something cleaner when it's the last holdout in the pollution
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1). They rely on the grid for their power, which is supplied by carbon producing minerals. Coal/Natural Gas.
That is not at all universally true. Many parts of the world get a significant amount of electricity from solar, wind, hydroelectric, or geothermal, and the general movement is in that direction. Also, large power plants are more efficient and better able to contain waste products than large numbers of small engines.
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The Osborne 1 was the first commercially available laptop computer, sold in 1981 for an inflation adjusted $5,007 (1981 price, $1,800). You can get a Dell laptop starting at $799 (didn't even try to find a cheaper option, though I'm sure they exist).
Just as an FYI, I bought a cheap Dell laptop for $300 a couple months ago.
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No such thing as a market cap (Score:2, Insightful)
For large companies the notion of a market cap is fiction. If one defines market cap as shares outstanding times market price this number has no bearing on the sale value of the shares. Any attempt to sell a trillion dollars of stock at once would force the price to fall in the process of selling it. At that level the last shares might not even find a buyer at any positive price. Thus the market cap would be massively greater than the realizable market trade.
Saying the market cap dropped by 119 billion i
Re: No such thing as a market cap (Score:3)
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Right answer but wrong rationale for getting to the answer. Companies are never purchased for their stock market market cap. They are purchased because they company has some value, usually earnings capacity. A good rule of thumb is that the selling price of a value-oriented company (as opposed to a growth stock) is that about 10x it's earnings. that is the payback period (ignoring net present value) is about ten years. If the company has growth potential then the price should be higher. Thus to take a
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It's not as stupid as your punctuation.
Semicolon - the new comma!
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With a declining PE, I'd disagree...
https://www.nasdaq.com/symbol/... [nasdaq.com]
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It's not about whether it's a good report or a bad report. It's about whether it's a better or worse report than people are expecting. And how well the spin of bulls and bears is taken, because trust me, both will have their own radically different interpretations of the same thing.
I can however tell you that people are expecting a bad report. Particularly since they held back over 10k vehicles to avoid tolling the tax credit limit in Q2, so that's a lot of production that they hadn't gotten paid for yet i
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It's not about whether it's a good report or a bad report. It's about whether it's a better or worse report than people are expecting.
That's a point worth repeating.
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It's not about whether it's a good report or a bad report. It's about whether it's a better or worse report than people are expecting.
That's a point worth repeating.
As I understand, the problem was that the CFO used the term "decelerate" to refer to Facebook's slowing growth, and this rang alarm bells, presumably among people who think that a decrease in the rate of increase of subscribers is somehow the same thing as an actual decrease in the number of subscribers.
Tech stocks seem generally to be based on the idea that you have to have a continuous upward curve on the rate of increase of sales/subscribers/profit/whatever. So if you double your income one year, then
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I didn't buy 12 months ago. I bought mostly this spring, at $263. I've had a number of small purchases since then - most significantly positive, a few about the same, and only one meaningfully negative.
I assume you've got your short positions in, in advance of the Q2 report?
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"Irrational" is looking at past sales rates on a company that's actively undergoing an exponential growth curve, and continues to invest in said curve, and has reservations to buy all of its products (not even just "all of its cars" - all of its products period) years in advance. And yes, that even still applies to the Model 3 - they're milking all of the LR RWD, AWD and P from the US and Canadian markets they can, but that's still just a quarter of their reservations. Eurospec doesn't even start sales un
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And their magicked-into-existence gigafactories to make these things in volume are where, exactly?
Production has significant time delays from when you start paying for it to when you start gaining benefits from it. Wanting to make a "competing product that is as good" doesn't make it just happen. Everyone has some sort of "EV" out there, but they're all in much smaller volumes, and generally loss leaders (aka "compliance cars"). As an example: you know the Jaguar I-Pace, getting all of that press as a "Te
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> and generally loss leaders (aka "compliance cars").
Don't you find that scary for TSLA? Tesla has great product, but a bunch of competitors willing to sell product below cost generally isn't good for your ability to sustain margins, especially if the gaps between products are going to narrow. (And gaps between innovative products and everything else *always* narrow).
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Consider that with all those billions lost, the stock fell only to where it was in May! BTW, were is everyone going to complain about it?...on FB, and other social media already owned by FB. FB is spending money on something they've taken a blackeye on...security, so as much as I dislike them, I see this as a positive move.
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There is no such thing as a free lunch. Money for nothing is always evil at its core, that is just fact.
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While all three stocks are over valued. At least Netflix and Tesla make things, (tv content and cars), Facebook just makes money by selling its users data and maintaining its walled garden.
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Read Fuckerburg and a few insiders cashed out a few billon before the stock tumbled.
Maybe FB will go the route of pets.com, a few drops, a few bounces then worthless,
FB doen't actually appear to have real value, only what people think it's worth, they make nothing, not even a dog puppet to auction..
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Investments in positive cash flow will always make sense. Facebook has a P/E of 24, which can be thought of as a 5% yield were it to be returned to shareholders. And that's the yield with their current level of profit, but their profit has actually been growing for a long time, and it is forecast to continue growing. So why do you think FB doesn't have real value?
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That comment doesn't make any sense.
Why 15%? 15% of what? Revenue? Market capitalization? Book value?
And how can there possibly be a threshold that makes investment not be speculative?
THE END IS NIGH, Zuckerbook! (Score:4, Informative)
Time to bail out of Zuckerbook, folks. Zuckerbook is Old and Busted, time to scamper off to the New Hotness, whatever that is.
Really, leaving now will do Zuckerbook a favor by making it's death swifter.
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Talks about 'old people'
MFW what he means is 'anyone over 25'
Oh noes, you might have to (shocking!!1!) have face-to-face conversations with people! How will you EVER recover?
119 billion, 16 billion (Score:1, Troll)
Those numbers are greater than the GDP of nations. In 2017 the GDP of the U.S. was only about 20 billion.
https://www.statista.com/graph... [statista.com]
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How do you mentally imagine 20 trillion of anything?
I just imagine 20 followed by an absurd number of zeros. Works for me.
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I imagine sand grains in Sahara [youtube.com].
Re:119 billion, 16 billion (Score:5, Funny)
The market cap of Facebook fell from the GDP of Argentina to the GDP of Belgium, a difference of the GDP of Kuwait.
List of countries by GDP [wikipedia.org]
This is actually an apples-to-oranges comparison, since market cap is a measure of assets while GDP is a measure of income.
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Some libertarians don't really want capitalism in the sense of competition. If the big companies merged into one giant monopoly, they don't care, often believing other forces will eventually compensate or end the monopoly without gov't intervention. Lack of gov't meddling may be more important to them than sufficient competition because they believe the problems caused by gov't outweigh the value of their their fixes.
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Some libertarians don't really want capitalism in the sense of competition. If the big companies merged into one giant monopoly, they don't care, often believing other forces will eventually compensate or end the monopoly without gov't intervention.
Regarding the bolded portion : Like competition enabled through true free markets? I'm not saying we have a truly free market. But that would be the ideal for real libertarians. But hell, we don't really have real libertarians anymore either so....
Political bias? (Score:1)
I've seen no clear evidence of systematic political censorship from "big social media" (BSM). Early on they didn't monitor internal "bouncers" very well which may have led to some direct political censorship, but after such slip-ups became public they cracked down on policy enforcement, and monitor the bouncers better.
But there could be be indirect bias. Conservatives and libertarians tend to favor what I'll call "political inco
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Got it.
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I'm not sure what you mean. How about an example.
Sucks for investors.. (Score:2, Insightful)
but has facebook made our lives better? If it vanished tomorrow would it matter? Like tobacco companies?
Re: Sucks for investors.. (Score:1)
I gave up FB a year and a half ago. It sucked for a week. After that I didnâ(TM)t even think about it. All social media is a huge time suck.
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And yet here you are on /. whining about it. :-)
*zing*
Simpson: Nelson: Ha-Ha! (Score:5, Insightful)
Oh look, imaginary value dropped. Sucks to be you.
When is the /. article for when Fuckerberg [i.redd.it] takes a shit?
--
Insecure children censor.
Adults communicate about taboo subjects, and laugh.
yay (Score:2)
...normally this would be a buy opportunity... (Score:3)
Re: ...normally this would be a buy opportunity... (Score:2)
Re: ...normally this would be a buy opportunity... (Score:4, Informative)
Re:The Stock Market is Fucking Stupid (Score:5, Insightful)
Oh, you think they're stupid? If you haven't figured out by now that stock prices are entirely based on wishful thinking then I've got some bad news for you...
This has been another episode of... (Score:1)
Go Woke! Go Broke!
Inverted (Score:5, Insightful)
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Hey Schmuckerberg, I'll take the whole shithouse off your hands for ONE PENNY. US currency, CASH. Final offer.
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Headline should be: "Facebook suffers over-inflated stock prices for X years."
Where X = 1? Even after this 20% drop, the stock price is still higher than it was a year ago.
It's not a big deal (Score:3)
They've lost a little less than one year of stock price increases --- which also happened before last year. If you were in on Jun 1, 2017 then you still have a slight gain, and if you were in before that date you still have a huge gain.
This is just a 18% bump down, and chances are it will recover back up from bad news ---- such minor retracements happen all the time, and it's not too significant, as long as it doesn't continue dropping... time will tell.
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I've got this bridge I'd be will to let you take off my hands for the right price.
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On on 10/2/2017, Facebook was at $172/Share, On 3/26/2018, Facebook was at $157.20/Sh, Today they're at $173/Share.
Yes.... so far this looks like a minor retracement; we'll see in a few weeks if they recover or if this may be the start of a new trend,
but we don't see that there's some super major event.
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It was not the biggest loss in stock market history; that's just flagrantly incorrect. I would suggest you go do more research.
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You could maybe argue it's only due to inflation. Intel's daily loss of $90 Billion in 2000 would be bigger in inflation adjusted terms for example.
But to argue it's only a "minor retracement" is just pants on head retarded.
GA.A (Score:1)
One down. Next ?
Bitcoin (Score:2)
But then I checked the comments... and not one bitter genius said "but it's fake value - SO IT'S SHIT YOU STUPID PUTTING YOUR MONEY IN BTC HAHAHA IT'S NOT REAL!1".
Good. Thank you for letting me know this is real.
It's just PAPER (Score:1)
Not surprised (Score:2)
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