Facebook Shares Plunges More Than 20% Wednesday as Investors Panic

Shareholders in the social media behemoth, Facebook are a worried lot after it lost one-fifth of its value during the Wednesday session at the stock market.

According to market analysts, the shares drastically dropped as a result of the social media site missing the revenue expectations due to the dwindling numbers of its users around the world.

The stock dropped by 7 percent immediately the warning on its earning was made and then went ahead to plunge into a loss of more than 20 percent despite the fact that 34 million shares traded on Wednesday.

Market analysts foresee Facebook losing more than 100 billion dollars in market capitalization on Thursday if the Wednesday losses will cross over.

Facebook has been going through an economic turmoil from earlier this year following its controversial dealings with the embattled Cambridge Analytica which as accused of tapping people’s personal data from Facebook.

Analysts, however, note that the call to ‘delete Facebook’ that has been going on for months has not had any effect on the social media giants but admitted that it ‘will take years to fix Facebook.’

During the financial release, Facebook made 5.12 billion dollars in net income for the 2018 quarter, amounting to 1.74 dollars per share, up from 3.89 billion dollars which amounted to 1.32 dollars per share.

Despite making profits, Facebook did not hit the target that had been set and predicted by the analysts, something that sent panic among investors. The sales stood at 13.04 billion dollars, 41.9 percent than last year but lower than what had been estimated.