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Facebook Suffers Massive Loss Overnight That Could Have Shareholders In Mass Panic

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The last couple of days on the stock exchange have been tumultuous for Facebook to say the least. It started yesterday but continued today as the tech-heavy Nasdaq fell sharply after Facebook missed predicted earnings. It sent the social media giant into a massive share price decline. They are on track to lose in the neighborhood of $100 billion in market value. As of the time of this writing, Facebook shares are down more than 19 percent. Not good.

Facebook has lost about a fifth of their overall stock value. The Nasdaq 100 index was off by 1.2 percent. Facebook, however, was not alone in their misery.

Amazon has lost roughly 2 percent. Netflix fell by more than 1.7 percent before slightly bouncing back. Google’s parent, Alphabet, fell .2 percent. Rocky is an understatement for the tech market today. Twitter and Snap both fell as well, with Twitter by 2.5 percent and Snap by 3.1 percent.

Investors did not see this coming.” It happened after the Nasdaq Composite index hit a record just yesterday. Before Facebook started falling at the end of yesterday, they had jumped 1 percent during regular trading. After the bell, things got messy. Facebook posted weaker-than-expected daily active users for the last quarter and reported that revenue growth would decline sequentially in the second half of this year.

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“The Facebook guidance debacle will be a tough pill to swallow for the bulls and weigh on FANG names as this comes on the heels of a Netflix miss as well last week,” said Daniel Ives, who is the head of technology research at GBH Insights. “Facebook’s outlook will cause worries on the Street and that could spread to other names with stock multiples coming under attack. Facebook’s nightmare guidance will spook tech investors with a near term white knuckle period ahead.” It could cause a sort of contagion in the tech market that could see massive drops in values. We’ll see. The loss overnight and today could send shareholders into a mass panic.

With Facebook down more than 19 percent, they are on track for their biggest drop ever. Its previous biggest drop was a 12 percent fall in July of 2012 shortly after it went public. We are talking billions of dollars disappearing here. The good news is that the broader market is on much sounder footing at the moment. The SPDR S&P 500 ETF Trust was just below break-even. Investors were more than likely encouraged by President Trump’s comments following his meeting with European Commission President Jean-Claude Juncker that hinted at the possibility of a trade deal between the U.S. and the European Union. Trump got concessions out of the EU when everyone said it was impossible. Go figure.

Forbes is saying that Facebook is slowing down and that people should get out of their stock. From Forbes:

“Facebook is slowing down. And unless Mark Zuckerberg can speed it up again, you should get out of its stock. (I have no financial interest in the securities mentioned here).

Before getting into that, Facebook stock fell 20% in pre-market trading on July 26. That $123 billion market capitalization wipeout had a simple cause — a slower-than-expected growth and profit forecast.

To be fair, its daily average users (DAUs) increased 11% in the second quarter — but its 1.47 billion DAUs fell 10 million below the average of analysts’ estimates compiled by Bloomberg. Its user base was unchanged in its biggest market, the U.S. and Canada, at 185 million DAUs and fell 1% in Europe to 279 million DAUs, according to its quarterly report. And its $31.2 billion revenues — which soared 42% in the quarter — were $130 million below analysts’ expectations.

Facebook’s bad news bearer was CFO David Wehner who said revenue growth rates would decline in the third and fourth quarters.”

When Facebook’s top executives were asked on a conference call by analysts “for more information on exactly how the company’s financial future had changed so dramatically,” they could not satisfactorily answer according to Bloomberg. It sounds like they don’t know or are being cagey about their answers here.

Part of the pain Facebook is feeling right now is that investments they have made are not paying off. For example, they paid $19 billion for WhatsApp in 2014, which does not charge for the service. By May of 2018, WhatsApp messages had tripled with approximately 1.5 billion users who were sending 65 billion messages via the WhatsApp mobile app and web client per day, according to Business Insider. It is unknown if that is boosting Facebook’s revenue or hurting it. As an accountant, I would want to see those statistics in writing to figure it out.

The revenue payoff from Facebook’s $3 billion 2014 acquisition of OculusVR is not very big either. In the third quarter of 2017, Facebook sold 210,000 Rift headsets at $399 apiece, generating about $84 million in retail sales. That’s a poor return on investment. Digital advertising is also suffering and doesn’t seem to be growing for Facebook these days. Forbe’s is also concerned about Zuckerberg himself, as they feel he is in over his head and cannot be displaced. We’ll see.

Whatever the reasons, it’s been a rough week for Facebook and shareholders could be starting to eye the exits. Again, not good.

 

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White House Guests KNEEL During National Anthem, Trump Makes Them Immediately Regret It

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The Marine Corp band in their bright red uniforms were on the south balcony of the White House on a bright, sunny Tuesday in Washington, DC. The Army Chorus sang, beginning the event with ‘America the Beautiful’ and concluded with ‘God Bless America’. At least two people who were guests at President Trump’s Celebration of America event yesterday knelt, showing exactly why so many Americans are ticked over the National Anthem controversy.

The event replaced a celebration at the White House in honor of the Super Bowl win for the Philadelphia Eagles. These two disrespectful idiots took a knee as the “Star Spangled Banner” rang out across the South Lawn of the White House. Simply disgraceful. These aren’t social justice warriors… these are unpatriotic jerks.

A video was posted to Twitter by a reporter for SVT, the Swedish national public TV broadcaster. It shows a man, wearing a light blue button down, kneeling as the National Anthem played, before clapping and ultimately coming to his feet after the song finished. I guess he thought that was his five minutes of fame or something.

What it really amounted to was making a fool out of himself internationally. President Trump showcases all of these liberal dimwits for what they are… America-hating, radical leftists who are far more interested in hating our brave police officers and our country than they are in respecting America and taking national pride in their country and President.

When President Trump took the podium, he blew his audience away with his love for our country, military, police, flag and the National Anthem. He made every single person who disrespects them like this look like the small, craven liberals that they really are. The man, who did not identify himself, left the event immediately after the United States Marine Band performed the anthem, according to a news anchor for TV2 Denmark. Gee, crawling away with his tail between his legs like the lowly cur he his. Guess he couldn’t stand patriotism after he showed how much he hates his own country.

There was a second man who was pictured kneeling as well. That was posted to Twitter by a CNN White House producer. He was wearing a light blue checkered shirt and had a little American flag. This guy was right up front. He was also apparently the same person who reportedly heckled Trump. That guy was roundly booed by everyone around him. CNN’s analyst April Ryan posted false news on Twitter yesterday claiming people were booing Trump when it was the heckler they went after. She eventually retracted what she said after her own colleagues called her out on the lie. “Stop hiding behind the armed services and the National Anthem,” the guy yelled to a chorus of boos, according to the Daily Mail. “Let’s hear it for the Eagles.” “Go home,” one person shouted at the heckler.

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The President didn’t engage the heckler, but looked in his direction and pursed his lips. He looked like he wanted to smack him. Right there with ya.

President Trump disinvited the Philadelphia Eagles to the White House after they at first said they had more than 70 players coming to the People’s House to celebrate. By this week, that number had dropped to less than ten and then to only one player. They kept trying to change the date to one where President Trump would be out of the country. I don’t blame the President in the least for canceling the visit. That was totally appropriate. If you insist on being ungrateful and insulting a sitting President of the United States, then you don’t deserve the honor of going to the White House period.

Trump claimed on Monday that the team disagreed “with their President because he insists that they proudly stand for the National Anthem, hand on heart, in honor of the great men and women of our military and the people of our country.” Eagles players denied that accusation, pointing out that no one on the team knelt for the anthem during last season. But that has nothing to do with how each individual on the team states his beliefs and shows his disrespect for President Trump.

White House Press Secretary Sarah Huckabee Sanders accused the team of a “political stunt” just minutes before Tuesday’s alternative event began, claiming the players had chosen to “abandon their fans.” That’s exactly what they did. “If this wasn’t a political stunt by the Eagles franchise then they wouldn’t have committed to attend the event and then backed out,” she said in her Tuesday press briefing. “And if it wasn’t a political stunt, they wouldn’t have attempted to reschedule the visit while the President was overseas.”

Trump was brief in his remarks and only spoke for about four minutes. He began by explaining why it’s an issue of patriotism for Americans to stand for the National Anthem. “We love our flag and stand for our National Anthem,” Trump said to great applause from the crowd on the South Lawn of the White House. “We stand to honor our military and to honor country and to honor the fallen heroes who never made it back home.” Yes, we do… and those that don’t can take a hike.

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Melania Unveils This Year’s White House Christmas Decorations That Libs Are SURE To Hate

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Melania Trump’s first year in office was marked by immense criticism of our incredible first lady, who in the eyes of the Trump family’s numerous detractors, Melania could do nothing right, or at least as well as her predecessor, Michelle Obama. This included her full Christmas decor plan, which was stunning in silver and white, and a beautiful modern take on the same tired style that Michelle un-creatively came up with.

This year’s decorations will likely be no different, if not worse.

Last year, liberals claimed she decked the halls in depression and gloom, likening it to looking more like a haunted house than a holiday home. So, what will they say about this year’s new look?

Chicks On The Right reports:

FLOTUS doesn’t just slay on the fashion front. Her decorating skills are off the charts. (Yes, yes– I know she didn’t do this by herself, but if you really believe she didn’t have a say, you’re nuuuuuuuuuuuuts.)

ANYWHO. She finally unveiled this year’s White House Christmas decorations, and they’re GORGEOUS.

You have no idea how much I want to stroll through those halls of beautifully decorated trees. Oh well. I’ll have to settle for the aisles of Hobby Lobby.

It all looks great. I’m obsessed. TY, that is all.

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