Not sure I get how finance works. Facebook just reported making $13 billion dollars in 3 months and somehow lost $120 billion dollars in value because of it.
People expected them to make >$13 billion.
Do you think any of it has to do with uncertainty about FB with regards to all the fake news stuff/cambridge analytica leaks/etc?
if Facebook brings in $50+ billion a year in revenue, that is like $20 per user per year, a number which I have no context
curious how that breaks out re: ads, third-party services, etc.
Facebook is down huge because they stated that profit margins will plummet for several years due to the costs of improving privacy safeguards and slowing usage trends.
Because it is a growth stock, this is very bad news. Doesn't matter that they are still insanely profitable... The incremental data point is that the go-go growth days are gone, and investors aren't willing to pay as large of a premium for a company with this adjusted profile.
I know this because it is my job.