shares fell 20 per cent on Thursday and $150 billion was wiped off its market value but it remains the dominant social media player.
Facebook investors are suing the social network, its CEO Mark Zuckerberg and CFO David Wehner after a poor earnings report wiped out almost $160 billion of shareholder wealth. The complaint also aimed at the company's failure to report falling operating margins and the significant decline in active users.
Facebook's decline significantly outpaced the $91 billion that Intel lost in September of 2000, during the original dot-com bust.
The American technology entrepreneur, according to Forbes, is now worth $77.6 billion.
The company also said revenue growth from emerging markets and the company's Instagram app, which has been less affected by privacy concerns, would not be enough to fix the damage.
Company shares saw a massive drop in March in the wake of the Cambridge Analytica data breach scandal.
Both the slower growth forecast and heavier spending reflect problems largely of Facebook's own making. But analysts attributed the user growth shortfall largely to European privacy rules that went into effect in May, not to the furor over the political consulting firm with ties to President Donald Trump, which improperly accessed the data of tens millions of Facebook users. Facebook revenue is still growing at a rate double that of Twitter. These moves have likely impacted Facebook's earning projections and user numbers, which led to the 24 percent reduction in its stock value. While users still encounter adds on Instagram stories, there are a lot less of them. Scott Kessler, a representative from CFRA Research commented on the issue: "Legal/regulatory developments have led to changes meant to support FB's platform and users, but they will notably restrain growth and profits for at least the next couple of quarters, in our opinion".