Facebook’s many scandals seem to have finally caught up to the social media giant–as well as its CEO, Mark Zuckerberg. A day after Facebook reported disappointing second-quarter results, the company has had its worst day of trading ever. Shares tumbled nearly 19%–and as a result, Zuckerberg’s net worth, which is composed overwhelmingly of Facebook shares, has fallen $15.4 billion since markets closed Wednesday. Forbes now pegs his net worth at $67.1 billion, making him the sixth-richest person in the world, down two spots from 24 hours ago, according to Forbes Real-Time Ranking.
Following months of negative press, including the Cambridge Analytica data breach, Facebook missed second-quarter projections for both growth in revenue and growth in the number of daily active users across North America and Europe. Investors were further rattled by a comment from Facebook CFO David Wehner, who said Facebook’s revenue growth would continue to slow down for the rest of 2018.
Since earnings results were announced at the end of the trading Wednesday, Facebook stock has tumbled 19%, falling from $217.50 to $176.26. The decline translates into a $119 billion drop in market capitalization, an astounding decrease in one day.
“Stepping back, Facebook is now shifting from the top of the sentiment pedestal to very shaky ground,” said Barclays’ analyst Ross Sandler.
Zuckerberg has been the face of the company’s many public relations disasters. In April, he testified before U.S. Congress regarding the Cambridge Analytica data breach and appeared before the U.K. parliament regarding the same incident in May.
Last week, he again stumbled when discussing Facebook’s censorship policy, telling Recode’s Kara Swisher, “I’m Jewish, and there’s a set of people who deny that the Holocaust happened. I find that deeply offensive. But at the end of the day, I don’t believe that our platform should take that down because I think there are things that different people get wrong.” (He has since apologized for his statement.)
But while Facebook may continue to take a hit in the near term, many analysts say the stock will eventually go back up again and are suggesting investors purchase shares while the price is right.
“Mark Zuckerberg has been talking and writing about fixing the business for months now and yet management is just now discussing its impact to financial results,” said Stifel analyst Scott Devitt. “The damage is likely done and there is a good business here despite management.”