FACEBOOK FAIL: Zuckerberg Loses $16 BILLION in FIVE MINUTES as Shares PLUNGE

Facebook's monthly active user count was 2.23 billion slightly behind the 2.25 billion forecast by analysts

At one point during the day, Facebook's shares were reported by CNBC to have dropped by as much as 24 percent, as it was poised to lose a whopping $123 billion in market value.

Previously, since the announcement of the Cambridge Analytica debacle earlier this year, Facebook's stock price had fallen, but had since more than recovered. Combine this pessimistic outlook with 1.54% user growth and 1.44% daily active users which are half of last quarter's growth percentage and we're looking at a company that is getting squeezed at both ends.

The news sent Facebook's stock free-falling almost 25 percent in after-hours trading.

The plunge followed Facebook's warning late Wednesday that its revenue growth will slow down significantly for at least the remainder of the year and that expenses will continue to skyrocket.

Or the situation could showcase the potential for GDPR to mess things up, as it would appear that European Union citizens are becoming more concerned about their data privacy.

Windsor added that Facebook is forced to hire more people to handle tasks such as filtering inappropriate content after discovering the limits of artificial intelligence. Not only did the Cambridge Analytica scandal only really affect Facebook users and not those on other Facebook-owned services like Instagram, WhatsApp or Oculus devices, but Facebook has been facing a trickling loss of younger users for years.

Mark Zuckerberg
Mark Zuckerberg

Facebook also surprisingly missed on advertising revenue projections, reached $13.04 billion compared with the StreetAccount and FactSet estimate of $13.16 billion.

Gene Munster, a venture capitalist at Loup Ventures, said in an email that Facebook is "entering a new period" where declining user growth will translate to slower revenue growth. In light of increased investment in security, we could choose to decrease our investment in new product areas, but we're not going to - because that wouldn't be the right way to serve our community and because we run this company for the long term, not for the next quarter.

But there's also been a notable slowdown in user growth.

Shares in Alphabet were unchanged while those in Apple and Netflix slipped just a third of a percent. I saw them sprawled out across airports recently when I traveled, and it was definitely weird to see them.in-person, letting me know they're protecting my data more, on my phone. all while I know they don't. "Real world issues that people thought should affect the company are now affecting the company". But Facebook, which reported sales growth averaging 50 percent the past 10 quarters, may just be lowering the bar so it can win back confidence in future quarters.

On Thursday afternoon, Facebook watched its capitalization drop by $119 billion, lowering its valuation to $510 billion, which represents a 19 percent drop, according to CNBC.

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