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Mark Zuckerberg loses $16 billion in record Facebook fall

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Facebook Inc Chief Executive Officer Mark Zuckerberg’s fortune is set to take a $16 billion hit on Thursday, as the social media giant braces for the biggest one-day wipeout in U.S. stock market history, a day after its executives forecast years of lower profit margins.

At least 16 brokerages cut their price targets on Facebook after executives said the cost of improving privacy safeguards, as well as slowing usage in the biggest advertising markets, would hit the company’s profit margins for more than two years.

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Facebook shares were down 20.4 percent at $173.20 in premarket trading, a decline that would wipe about $128 billion off the company’s value – or nearly four times the entire market capitalization of Twitter Inc.

Facebook’s second-quarter results were the first sign that a new European privacy law and a string of privacy scandals involving Cambridge Analytica and other app developers are hitting the company’s business.

Facebook also warned that the toll would not be offset by revenue growth from emerging markets and the company’s Instagram app, which has been less affected by privacy concerns.

Describing the announcements as “bombshells”, Baird analysts said the issues were to a large degree “self-inflicted” as Facebook sacrifices its core app monetization to drive usage.

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Of 47 analysts covering Facebook, 43 rate the stock as “buy”, two rate it “hold” and two rate it “sell”. Their median target price is $219.30.

The $16.4 billion in net worth that Zuckerberg stands to lose would alone be enough to get a rank of the 80th-richest person in the world, a position currently held by real-estate developer Donald Bren with a net worth of $16.3 billion, according to Forbes.

Some analysts said Facebook’s issues would not be easily resolved.

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“Unlike Netflix, whose quarterly shortfall we saw as temporary, here we see an evolution of the story, albeit a portion of which we expected,” said Daniel Salmon, analyst at BMO Capital Markets.

Others, however, saw a silver lining in Facebook’s emphasis on more engaging content and its promotion of stories on its News Feed, which would support revenue over the longer term.

“Bears win this quarter … but not the war,” said Brent Thill, an analyst with Jefferies.

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Reporting by Vibhuti Sharma, Munsif Vengattil and Devbrat Saha in Bengaluru; Editing by Robin Paxton

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Enjoy this piece?

… then let us make a small request. Like you, we here at Raw Story believe in the power of progressive journalism — and we’re investing in investigative reporting as other publications give it the ax. Raw Story readers power David Cay Johnston’s DCReport, which we've expanded to keep watch in Washington. We’ve exposed billionaire tax evasion and uncovered White House efforts to poison our water. We’ve revealed financial scams that prey on veterans, and efforts to harm workers exploited by abusive bosses. We’ve launched a weekly podcast, “We’ve Got Issues,” focused on issues, not tweets. Unlike other news sites, we’ve decided to make our original content free. But we need your support to do what we do.

Raw Story is independent. You won’t find mainstream media bias here. We’re not part of a conglomerate, or a project of venture capital bros. From unflinching coverage of racism, to revealing efforts to erode our rights, Raw Story will continue to expose hypocrisy and harm. Unhinged from corporate overlords, we fight to ensure no one is forgotten.

We need your support to keep producing quality journalism and deepen our investigative reporting. Every reader contribution, whatever the amount, makes a tremendous difference. Invest with us in the future. Make a one-time contribution to Raw Story Investigates, or click here to become a subscriber. Thank you.



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Trump is ‘not a stable genius’: GOP strategist says the president ‘doesn’t remember who and where he is’

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President Donald Trump's mental fitness is lacking, a top Republican strategist explained on "The Last Word" with Lawrence O'Donnell.

Rick Wilson, the author of the 2018 bestselling book Everything Trump Touches Dies: A Republican Strategist Gets Real About the Worst President Ever, blasted the commander-in-chief.

"Rick Wilson, your assessment of where the president stands as he heads off to the G7 summit?" O'Donnell asked.

"I think Donald Trump has had a week in which he is proving that this isn’t 87-dimensional chess game, this isn't some masterful strategy of communications or persuasion," Wilson replied. "This is an old man who is sick and who has problems and who has mental disconnects and who has aphasias and who has moments where he doesn’t remember who and where he is."

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George Washington Bridge shut down for all traffic as Bomb Squad investigates suspicious device

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Traffic in New York City slowed to gridlock on Friday after authorities shut down the world's busiest vehicular bridge.

"All traffic on the George Washington Bridge has been closed off due to reports of a suspicious device on the span linking New York and New Jersey," CBS New York reported Thursday.

"According to police sources, the Port Authority Police Department has called in the Bergen County Bomb Squad to help with their investigation," CBS added. "Sources tell CBS2 the NYPD has not been called in yet to assist with the possible threat."

https://twitter.com/PANYNJ_GWB/status/1164724186880675841

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Maddow walks through existence of a ‘whistleblower’ alleging the IRS is mishandling Trump’s taxes

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MSNBC's Rachel Maddow reported Thursday on the "confetti canon" of new filings in the legal battle between the Internal Revenue Service (IRS) and the House Ways and Means Committee over access to President Donald Trump's tax returns.

Maddow reported on Exhibit QQ in the latest filings, which is a letter from Ways and Means Chairman Richard Neal (D-MA) to Treasury Secretary Steven Mnuchin.

"On July 29, 2019, the Committee received an unsolicited communication from a Federal employee setting forth credible allegations of 'evidence of possible misconduct' -- specifically, potential 'inappropriate efforts to influence' the mandatory audit program," Exhibit QQ read.

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