Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
  1. Homepage
  2. Equities
  3. Japan
  4. Japan Exchange
  5. Keyence Corporation
  6. News
  7. Summary
    6861   JP3236200006

KEYENCE CORPORATION

(6861)
  Report
SummaryChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector news

Zuckerberg loses more than $15 billion in record Facebook fall

07/26/2018 | 05:08pm EST
FILE PHOTO: The Facebook logo is displayed on their website in an illustration photo taken in Bordeaux

(Reuters) - Facebook Inc Chief Executive Mark Zuckerberg's fortune took a more than $15 billion (11.44 billion pounds)hit on Thursday, as the social media company suffered the biggest one-day wipeout in U.S. stock market history a day after executives forecast years of lower profit margins.

At least 16 brokerages cut their price targets on Facebook after Chief Financial Officer David Wehner startled an otherwise routine call with analysts by saying the company faced a multi-year squeeze on its business margins.

That "bombshell," as one analyst termed it, played into concerns on Wall Street that Facebook's model could be under threat after a year dominated by efforts to head off concerns over privacy and its role in global news flow.

Shares closed down almost 19 percent at $176.26, wiping more than $120 billion off the company's value or nearly four times the entire market capitalization of Twitter Inc.

Slowing revenue growth initially pulled the stock down nearly 9 in after-hours trading on Wednesday before losses picked up on the margin outlook.

"Over the next several years, we would anticipate that our operating margins will trend towards the mid-30s on a percentage basis," Wehner said on a conference call with analysts.

Facebook's margin fell to 44 percent in the second quarter from 47 percent a year ago as it spent heavily on security and initiatives to convince users the company was protecting their privacy.

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 repair the damage.

The impact on the rest of the FAANG group of high-flying tech stocks was marginal.

Shares in Alphabet closed up 0.7 percent, while those in Apple Inc fell 0.3 percent and Netflix Inc closed barely higher. Amazon.com Inc was up 2.3 percent following its own results after the bell on Thursday.

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

MoffettNathanson analysts called the company's forecast "either the new economic reality of their business model or a very public act of self-immolation to stave off further regulatory pressure".

Rahul Shah, chief executive officer at Ideal Asset Management in New York, a Facebook shareholder, said executives were trying to reset expectations about growth but the outlook caught Wall Street by surprise.

"A lot of value investors might jump in and support the stock at these levels ... it's probably a good buying opportunity for a long-term investor, but I wouldn't be jumping in with both feet today," he said.

The more than $15 billion in net worth that Zuckerberg lost on Thursday is roughly equal to the wealth of the world's 81st-richest person, currently Japanese businessman Takemitsu Takizaki, according to Forbes real-time data.

Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma, in recent years has trimmed, but not eliminated, the amount of Facebook shares in his clients’ accounts, and he said he sees the company as a three-year investment.

"We own it for its leadership in the tech industry," he said. "It’s the F in FAANG, but what's to say that, 10 years from now, Facebook isn't the next Myspace and something else has taken its place?"

(Reporting by Vibhuti Sharma, Munsif Vengattil and Devbrat Saha in Bengaluru, Noel Randewich in San Francisco and Trevor Hunnicutt in New York; Editing by Robin Paxton and Patrick Graham)

By Vibhuti Sharma and Munsif Vengattil


ę Reuters 2018
Stocks mentioned in the article
ChangeLast1st jan.
ALPHABET INC. -2.69% 2843.66 Delayed Quote.62.25%
AMAZON.COM, INC. -2.12% 3504.56 Delayed Quote.7.60%
APPLE INC. -3.17% 156.81 Delayed Quote.18.18%
FACEBOOK INC -2.33% 333.12 Delayed Quote.21.95%
JUST GROUP PLC -5.51% 78.9 Delayed Quote.12.88%
KEYENCE CORPORATION -1.65% 70940 End-of-day quote.22.31%
NETFLIX, INC. 1.12% 665.64 Delayed Quote.23.10%
TWITTER, INC. -0.95% 47.07 Delayed Quote.-13.07%
WILL GROUP, INC. -1.38% 1431 End-of-day quote.42.25%
All news about KEYENCE CORPORATION
11/17Japanese shares dip as inflation worries hit global stocks
RE
11/04Nikkei 225 Up 0.9% on Federal Reserve Statement, Softer Yen
MT
11/03Japanese shares track Wall Street higher; Toyota outlook in focus
RE
10/29Japan shares rise on corporate optimism, but election caution weighs
RE
10/28Japanese shares dip ahead of election outcome; slow recovery weighs
RE
10/15Japan's Nikkei hits 2-week high on tech boost, marks 1st weekly gain in four
RE
10/14Japanese shares jump on tech boost, set to post weekly gain of over 2%
RE
10/01Japanese shares slump to 1-month low on supply concerns, U.S. stimulus stalemate
RE
10/01KEYENCE CORPORATION(TSE : 6861) added to Nikkei 225 Index
CI
09/30Japanese shares slump to one-month low as supply fears widen
RE
More news
Analyst Recommendations on KEYENCE CORPORATION
More recommendations
Financials
Sales 2022 717 B 6 316 M 6 316 M
Net income 2022 285 B 2 508 M 2 508 M
Net cash 2022 1 348 B 11 871 M 11 871 M
P/E ratio 2022 60,4x
Yield 2022 0,32%
Capitalization 17 205 B 152 B 152 B
EV / Sales 2022 22,1x
EV / Sales 2023 19,6x
Nbr of Employees 8 380
Free-Float 77,0%
Chart KEYENCE CORPORATION
Duration : Period :
Keyence Corporation Technical Analysis Chart | 6861 | JP3236200006 | MarketScreener
Technical analysis trends KEYENCE CORPORATION
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 19
Last Close Price 70 940,00 JPY
Average target price 76 269,47 JPY
Spread / Average Target 7,51%
EPS Revisions
Managers and Directors
Tamotsu Nakata President & Representative Director
Yoichi Tanabe Independent Outside Director
Seiichi Taniguchi Independent Outside Director
Takemitsu Takizaki Honorary Chairman
Akira Kanzawa Director
Sector and Competitors
1st jan.Capi. (M$)
KEYENCE CORPORATION22.31%151 777
SCHNEIDER ELECTRIC SE28.13%95 110
EATON CORPORATION PLC42.29%66 769
NIDEC CORPORATION-0.62%66 520
EMERSON ELECTRIC CO.12.37%53 725
ROCKWELL AUTOMATION, INC.37.53%39 341