Facebook shares in free fall, plunging 21 per cent as weak outlook stuns market
The huge drop will have wiped out US$130 billion in market value, if the slump is confirmed in Thursday’s market opening
Facebook shares went into a free fall Wednesday as a stunningly weak financial outlook raised fresh concerns for the social networking giant as it tries to recover from the impact of data protection scandals and investigations.
After-hours trade saw Facebook shares plunge by some 21 per cent, wiping out an estimated US$130 billion in market value if the slump is confirmed at Thursday’s market opening.
The second-quarter report sparked initial selling after it showed revenue and user growth came up short of expectations.

Selling pressure accelerated when chief financial officer David Wehner warned in a call with analysts of a weaker outlook in the coming quarter.
