After Facebook (FB) reported disappointing results for the last quarter, the company’s shares sunk over 20% to $176.26, as investors were both startled and unhappy with setbacks in revenue and user growth.
The social media giant lost roughly $120 billion of its value, marking the largest market capitalization loss in history. Founder and CEO of Facebook, Mark Zuckerberg, owns a 13 percent stake in the company and experienced a $12 billion drop in net worth in less than 24 hours.
Josh Blechman from Exponential ETFs appeared on CNBC to share his thoughts on the drop of the company’s share price.
“Prior to announcing earnings, they were reaching all-time high after all-time high, but what came out here… not only was it the slowing in growth among the active users, but a miss on the topline revenue, and on the call a mention that topline revenue growth may be slower moving forward,” Blechman says.
“I think, to a certain extent, expectation had risen as victims of their own success because of the large growth they have been showing.”
Watch the full clip below:
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