After its disappointing earnings report on Wednesday, Facebook's stock took a bath yesterday with its biggest single-day drop since it started trading publicly in May 2012. On a market-capitalization basis, the company saw $120 billion erased, the biggest one-day loss in U.S. stock-market history.
The decline exceeded the previous record set by Intel, which had a $91 billion single-day loss in September 2000. In just a single day, the decline in Facebook’s market value was roughly the entire market value of McDonald’s or Nike.
Remember, though, that a loss of this magnitude is only possible if the company is gigantic to begin with. Facebook dropped to a $510 billion valuation from a peak of $630 billion, after an eye-popping 472 percent run-up in its stock price since going public.
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