Facebook stock market shares up after ‘shocking’ news
Facebook shares are up sharply after the company’s shares were slashed by nearly 30 per cent.
Facebook shares were down nearly 30% after the social network reported a loss of $1.4 billion, a quarter of its revenue.
The company’s chief executive Mark Zuckerberg was among the people to be shaken by the news.
The stock’s value has fallen from around $140 a share in mid-December to less than $20 now.
“It was the worst I’ve ever seen it, it’s the worst week I’ve seen in my career,” said Facebook chief operating officer Sheryl Sandberg.
“I can’t imagine anything worse.”
“We’ve lost control of the story,” Ms Sandberg added.
Facebook said it had seen its quarterly profit slip to $3.3 billion from $3 billion.
Analysts were split on whether it was a fluke or a sign of things to come.
“There are going to be times where you’re going to see a slowdown,” said Michael Pachter, an analyst at Jefferies.
“And you can’t really expect that to continue for a long period of time.”
Investors were also divided over whether Facebook’s new CEO, Sheryl Swarbrick, would do anything to rein in the company.
Ms Swarbrock, the daughter of former US president Bill Clinton, took over the company in October.
“We are doing a lot of really great things for the company and for its community,” Ms Swartbrick said.
“So I’m looking forward to helping shape that future.”
The social network had also said it would invest $3 million into an accelerator program that would train young people to start businesses.