With its market capitalization cut by $119 billion on Jul. 26, 2018, social media giant Facebook Inc. (FB) became the largest company to see a one-day decline in its stock price wipe more than $100 billion from its market cap.
Facebook’s stock plummeted from $216 a share on Jul. 25, 2018, to $176 the next day. The price plunge came after the company released earnings for the second quarter of 2018. While the $100-billion plus record-setting number looks big, there are other large companies that have seen large single-day stock declines.
- Many well-known companies have seen billions shaved off their market values in a single day due to earnings misses and negative information that affected their businesses.
- Facebook took the lead in 2018 as the largest company to lose more than $100 billion from its market capitalization in a single day—losing $119 billion.
- Other notable companies losing billions off their market cap include Intel and Microsoft (both in 2000), losing $90 billion and $80, respectively.
- Recent major losses—both in 2018—happened to Alphabet and Amazon. Alphabet lost $41 billion and Amazon lost $36.5 billion in a single day.
1. Intel Inc. (INTC)
Closely following Facebook is the leading chipmaker Intel (INTC), which lost more than $90 billion on Sept. 22, 2000. The decline was a result of the company announcing weaker demand in Europe that would result in lower-than-expected third-quarter results, which also came amidst the dot-com bubble bursting. The third-quarter revenue growth was expected to come in at half of what analysts expected, reported CNN Money. Roughly 22% of the company’s market cap was wiped out.
Stocks tend to rise and fall daily, with the risk of a steep decline generally stemming from a poor earnings report, data breaches, or anti-trust laws, among others.
2. Microsoft Corp. (MSFT)
The third spot on the list is claimed by Microsoft (MSFT), which saw its market cap take a large hit on Apr. 3, 2000, to the tune of $80 billion. Bill Gates, then among the company's largest shareholders, lost around a record $11 billion in the selloff.
The decline was triggered by a federal court decision that found that the company had violated antitrust laws by misusing its monopoly in personal computer operating systems to stifle competition.
3. Apple Inc. (AAPL)
iPhone maker Apple (AAPL) holds the fourth spot for losing close to $60 billion on Jan. 24, 2013. Despite the company reporting a record profit for the quarter, its future forecasts were not perceived positively by the market as they indicated declining consumer demand for its products, in particular for its iconic iPhones. Overall, the intraday decline was around 12% for Apple shares, and 36% down from the company's all-time high of $705 at the time.
4. Exxon Mobil Inc. (XOM)
Exxon (XOM) is next in the list, with a close to $52.5 billion single day loss that occurred for the oil major on Oct. 15, 2008. The decline in Exxon shares was coupled with that of the overall market, as the Dow Jones Industrial Average (DJIA) fell 733 points—its second-largest one-day point loss ever—second only to Sept. 29, 2008.
Crude oil prices touched a then-record low of $74.62 and the oil major Exxon was the worst hit. The decline came as the Organization of the Petroleum Exporting Countries (OPEC) released its monthly report citing renewed worries of a global recession hitting oil demand and stalling the world economy.
5. General Electric Co.’s (GE)
The market cap of heavyweight conglomerate GE (GE) had a record fall of around $47 billion on Apr. 11, 2008, attributed to a decline in its first quarter of 2008 earnings and a forecast for second-quarter earnings that fell short of analysts' expectations. The share price of the index heavyweight fell around 13%.
6. Alphabet Inc. (GOOGL)
Internet giant Alphabet (GOOGL) saw its market cap drop by more than $41 billion on Feb. 2, 2018. The drop was a result of the company missing its quarterly earnings forecast leading to a decline of more than 5% after the announcement.
Though the search giant reported robust sales growth in advertisements, the gains were offset by its higher spending to promote its consumer gadgets, YouTube app, and cloud computing services.
7. Bank of America Corp. (BAC)
Bank of America (BAC) lost more than $38 billion in market valuation on Oct. 7, 2008, as its stock fell around 26%. The trigger was a steep decline in quarterly profits that fell short of the street’s estimates and the company announcing a dividend cut. The bank also announced a need to raise $10 billion in capital through a stock sale and to set aside capital for bad loans.
8. Amazon.com Inc. (AMZN)
Shares of online retailer Amazon (AMZN) fell by more than 5% on Apr. 2, 2018, wiping out nearly $36.5 billion from the company’s market cap. Despite being among the best-performing stocks over the past 12-month period, Amazon took a hit thanks to a tweet from President Trump accusing Amazon of scamming the U.S. Postal Service, while also claiming the USPS loses "billions of dollars" delivering packages for the e-commerce giant.