Time to update your status, Facebook

By Trevor Hoey. Published at Jul 27, 2018, in Features

Facebook, Inc. (NASDAQ:FB) is used to hitting it out of the park, but after delivering poor sales and user growth figures it was hit for six as the largest ever loss by market capitalisation of value in one day for a US traded company unfolded.

The company’s shares plummeted from US$217.50 to a low of US$173.75 before closing just above its intraday low.

To put this in perspective, the company’s shares are now trading broadly in line with where they were 12 months ago.

It is worth noting that the NASDAQ index has increased from about 6380 points to 7900 points in the last 12 months, representing an uptick of nearly 25 per cent.

That gives you an idea of the level of underperformance against its peers that is now implied by its share price.

However, there are still those that believe in the stock.

To read more, subscribe to the Finfeed newsletter, live at 10.30am every Saturday morning...

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of Maven Capital Pty Ltd (AFSL No. 418504). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.