Facebook Drops Value to Lower Than Entire Bitcoin Circulation
Shareholders at Facebook have struggled throughout 2018. Recently managing to climb back after the scandal involving Cambridge Analytica and conflicting earnings reported on the 25th of July has left shareholders with the decision that Facebook is worth almost $150B less than the entirety of Bitcoin in circulation which amounts to just over $140B. This comes after Facebook has released warnings regarding slower gains.
As of now, Facebook is valued at almost $500 billion on the market and a hefty drop of 24 percent of shares have dropped. Regarding the controversy surrounding CA previously, private user data was acquired and as of now, the social media company’s market cap losses are far more than the number it dropped after the controversial findings were revealed.
Albeit the scandal and Facebook’s advertisements related to Russia, the company has surpassed any estimations on a regular basis in the last few quarters of 2018. The stock has risen heavily and estimates are constantly achieved and surpassed.
As it seems, Facebook is struggling with its shareholders. On the 25th of July, Facebook published its findings, revealing that shares were $1.74 for Q2 of 2018, out of a $13B revenue, a minor exceeding of what investors and analysts have predicted. On the other hand, Facebook is also struggling with user growth given a mere 1.44 percent of daily users on an international scale, much lower than the Q1 findings of almost 3.5 percent.
As more attention is aimed towards privacy concerns following prior situations, Facebook has also stated that Q2 of 2018 will see much slower gains while it works on reinforcing privacy conditions as a means of rebuilding trust among its users given the abuse of personal info by leading technology corporations. Additionally, the EU has just implemented the GDRP, a new regulatory rule that provides data protection.