>> Facebook is making history, but not the kind investors want to celebrate. The world's biggest social network lost $116 billion in stock market value Thursday, the biggest one-day wipe out for any company ever. The massive sell-off prompted by a profit warning, revenue miss, and slower than expected user growth, at one point left CEO,Mark Zuckerberg, $16 billion poorer.
Reuters breaking news columnist, Rob Cyran, sees this as a reminder. On Wall Street, nothing is invincible, including these so-called FANG stocks, Facebook, Amazon, Apple, Netflix and Google Parent Alphabet.>> The problem is just investors just bid up these stocks to incredible heights and they didn't even, even when Zuckerberg came out over the past several months and he said repeatedly that we're gonna have to invest more in the platform, growth is slowing, they've had all these warnings, but investors have ignored them, and now they're finally actually paying the price.
>> A data scandal is forcing Facebook to spend more on its platform, at the same time user growth is slowing. For some, Wall Street's love affair with text stocks is splashing a warning signal.>> It's over 25% of the total market by market capitalization. And that's actually, it tends be a good guide, when you get one sector that's that big a part of this stock market, it tends to be a signal that investors are getting a bit too excited about that.
We saw something similar in the year 2000, where technology represented a huge chunk of evaluation in the stock market. We saw something similar in the mid-2000s with financial stocks, right before the great financial recession. We're seeing something similar to that now.>> But few market watchers think Thursday's Facebook-led decline is the start of a tech bare market.
Amazon restoring some confidence in tech. After the close, the tech giant reporting quarterly profits that far exceeded forecast.