Facebook stock dropped nearly twenty percent on Thursday following the release of the company’s earnings report and average daily user counts, but what really led to such a drastic change in the company’ stock value?
Facebook has dealt with a number of controversies and issues over the past year which contributed to the company’s recent drop in share price, falling by as much as 24% following the release of company earnings reports. Mark Zuckerberg personally lost approximately $17 billion in perhaps the largest single-day loss for an individual in history.
But aside from poor earnings and a lack of user growth, what led to such a major market correction on Facebook’s stock? Breitbart Tech has identified five contributing factors.
1. Zuckerberg’s Performance Before Congress
Facebook CEO Mark Zuckerberg appeared before Congress in April to discuss the company’s latest data leak scandal, which allegedly saw the personal data of 84 million users accessed without their express permission. During the hearing, Zuckerberg dodged questions from Senators, repeatedly telling them that his team would “follow up” on any questions he was unable to answer. He also repeatedly mentioned that he “founded Facebook in my Harvard dorm room,” to emphasize how far the company had come in a short space of time.
Following the hearing, questions remained around whether or not Zuckerberg had been entirely honest with Congress; the fact that the CEO was not under oath during…