Nearly $120 billion (€103.1bn) has been wiped off Facebook’s market value, which includes a $17 billion hit to the fortunes of Mark Zuckerberg, head of the company. The social media giant told investors that user growth had slowed as a result of the Cambridge Analytica scandal.
Facebook’s shares plunged 19 per cent on July 26th after it revealed that some 3 million users in Europe had abandoned the social network since the news that Cambridge Analytica had shared details of some 87 million Facebook profiles and the introduction of strict European Union data protection legislation.
Facebook’s share price plummet is the biggest ever one-day drop in a company’s market value – and equivalent to almost the entire value of McDonald’s and Nike. Shares fell to $176, valuing the company at $510 billion, a drop of $119 billion from $630 billion on July 25th.