(Reuters) – Facebook CEO Mark Zuckerberg’s wealth took a more than $15 billion hit in less than 24 hours, as the social media company suffered the worst day in U.S. stock market history a day after executives forecast years of lower profit margins.
Facebook shares plunge 19% and $119 billion is wiped off the company’s value. 26 July 2018 was the social media giant’s worst day in six years as a public company, as well as the biggest one-day wipeout in US stock market history.
Eight Facebook insiders have sold a combined total of $3.9 billion worth of stock since the social media site was plagued by the Cambridge Analytica scandal.
“Over the next several years, we would anticipate that our operating margins will trend towards the mid-30s on a percentage basis,” Facebook’s Chief Financial Officer David Wehner said on a conference call with analysts.
Zuckerberg accounted for about 90 percent of total sales, which were part of a predetermined plan he announced last September. The Facebook CEO and his wife Priscilla Chan pledged they would sell most of their shares over time so that they could invest in charities.
Rahul Shah, the chief executive officer at Ideal Asset Management in New York, a Facebook shareholder, said executives were trying to reset expectations about growth but the outlook caught Wall Street by surprise.
“A lot of value investors might jump in and support the stock at these levels … it’s probably a good buying opportunity for a long-term investor, but I wouldn’t be jumping in with both feet today,” he said.