Facebook Inc.'s collapse in market value on Thursday has officially made stock market history for the worst single-day loss for any company ever — and by a significant margin.
"The social media giant's market capitalization plummeted by $119 billion to $510 billion as its stock price plummeted by 19 percent," CNBC reports. "At Wednesday's close, Facebook's market cap had totaled nearly $630 billion, according to FactSet."
CNBC notes that no company has ever lost $100 billion in value in a single day. The closest any company has come to that mark is Intel, which once lost $90.7 billion when the dot-com bubble burst. The next worst day was suffered by Microsoft, which lost $80 billion. Fourth on the list of single-day losses is Apple, which suffered a $59.6 billion hit; fifth and sixth are Exxon Mobil ($52.5 billion) and General Electric ($46.9 billion)
As The Daily Wire reported Thursday, Facebook's losses come amid the company's continued PR troubles and after executives revealed on Wednesday that they expected the company's profits to drop off dramatically for at least the next two years as a result of significant changes over how it's protecting the privacy of users and a slowdown in usage in big advertising markets.
CFO David Wehner informed investors Wednesday that the company's operating profit margin had fallen in the second quarter to 44% (down 3% over last year). Most troubling was his prediction that Facebook's profits would sink to the "mid-30s" for more than two years, Reuters notes.
Amid all the PR turmoil and gloomy numbers, Business Insider reports that on Wednesday, Investment company Trillium Asset Management filed a proposal designed to check Facebook CEO Mark Zuckerberg's power by separating the chair and CEO positions, both of which he currently holds.
"Separating the chair and CEO positions reduces this conflict, and an independent chair provides the clearest separation of power between the CEO and the rest of the board," the proposal states.