Facebook is sued after stock plunge

Facebook CEO'We're a technology company. We're not a media company

According to Business Insider, a Facebook investor has drawn up a new proposal to oust Mark Zuckerberg as chairman, 10 months before the social networking giant's next shareholder meeting.

In a research note, he said Facebook's outlook "suggests that while the company is still growing at a fast clip, the days of 30 percent-plus growth are numbered".

Growth in the number of users who logged in each day fell short, too, up 11 percent year-over-year at 1.47 billion but still less than the 1.49 billion anticipated.

Despite the rocky quarter, Facebook shares had hit an all-time high before Wednesday's earnings report and its quarterly revenue was still up 42 percent from this time previous year.

Facebook boss Mark Zuckerberg's fortune has shrunk by nearly $16 billion after the social network was clobbered by the biggest one-day price drop in stock market history.

Revenue in the second quarter totaled $13.23 billion, shy of the $13.33 billion analysts expected, raising worries that the political and social backlash against the company is affecting its bottom line.

Investors were more than a little put out by Facebook execs saying they expect revenue growth to slow as they focus greater attention on user privacy. This translates to a US$124 billion decline in market capitalization, which is the largest ever loss of value in one day for a USA traded company.

The new General Data Protection Regulation in the European Union forced several changes to Facebook's privacy terms and sign-up process.

United States and European Union should ‘drop all Tariffs, Barriers and Subsidies’, Trump says
It is a clear signal US President Donald Trump is determined to stick with tariffs as his weapon of choice in the conflict. The two sides agreed to agree in the near future on the tariff question.

That almighty crash comes as the result of Facebook shares collapsing by 18% when the New York Stock Exchange opened its doors.

While privacy was an issue in Europe, politics played a role in North America, which is the company's most lucrative advertising market.

Thoughts? Let us know what you think in the comments section below and stay tuned.

The drop in share price sent Mark Zuckerberg's fortune tumbling by US$16.8 billion, which could send him sliding down the Bloomberg Billionaires Index.

The company had cautioned investors to expect a big jump in costs because of efforts to address concerns about poor handling of users' privacy and to better monitor what users post.

The Facebook founder still owns a 13 percent stake in the company, but the slump in share price saw more than $12bn wiped from his net worth in just 24 hours. But the dollar's decline this year will reduce the dollar value of Facebook's foreign revenue.

It continues, "In approving this annual security allowance, the Committee considered Mr. Zuckerberg's position and importance to Facebook and the fact that Mr. Zuckerberg has requested to receive only $1 in annual salary and does not receive any bonus payments or equity awards ..."

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