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Facebook plummets nearly 25% in two hours as numbers disappoint ($FB)

26 Jul 2018 | by: Richard Mason

Facebook (NASDAQ:FB) shed almost 25% of its value – that’s $150 billion –  in just 2 hours after sales growth and user numbers disappointed shareholders. This occurred in after-hours and if repeated in Thursday’s live market session it could prove to be the biggest one-day share price drop of any company in history. That record is currently held by Intel Corp who lost $91 billion in one day back in 2000 as the tech boom unravelled.

What is interesting is that there has been a very strong rally in Facebook since the controversy over its data handling smashed the stock down in the Spring. Could this have been a ‘spoof rally’ luring more retail investors in and letting the big players out?

In after-hours, Facebook hit lows of $16450, dropping from $21900. The price has since bounced a little but has already bumped its head on the 100 and 200 Day Moving Averages (DMA). Failure to regain these key levels would signal a longer-term decline for the stock.

Author: Stuart Langelaan

Disclosure:  The Author does not hold a position in any of the companies mentioned above., Digitonic Ltd (and our owners, directors, officers, managers, employees, affiliates, agents and assigns) are not responsible for the content or accuracy of this article. The information included in this article is based solely on information provided by the company or companies mentioned above.

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

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