Tech stocks fall with Facebook seeing its biggest drop ever

• The tech-heavy Nasdaq closed lower Thursday after disappointing quarterly results from Facebook.
• The social media giant saw its biggest share price decline ever and roughly $119 billion in market value.

The tech-heavy Nasdaq fell Thursday after disappointing quarterly results from Facebook sent the social media giant tumbling to its largest one-day loss ever. 

The Nasdaq Composite dropped 1 percent to finish at 7,852.18, led by a steep decline in the social media giant. Facebook posted the largest one-day loss in market value by any company in U.S. stock market history after the report, losing more than $119 billion in market value. 

The Invesco QQQ Trust, which tracks the Nasdaq 100 index and can give traders a good idea of how the Nasdaq stocks will trade, closed more than 1.5 percent lower, and the Nasdaq 100 index ended up .8 percent lower.

Facebook's "FANG" brethren were also down. Amazon, which reported better-than-expected earnings after the bell Thursday, lost roughly 8 percent. Netflix, which disappointed FANG investors with its own set of weak results earlier this earnings season, closed slightly higher.

Facebook competitors Twitter and Snap also felt the pain, losing 3 percent and .15 percent, respectively.

Investors did not see this coming. The Nasdaq Composite index hit a record during trading Wednesday as investors crowded back into the FANG names once again. Facebook was responsible for a lot of that boost, jumping 1 percent during regular trading.

But after the bell it was a different story.

Facebook posted weaker-than-expected daily active users for last quarter and said revenue growth would decline sequentially in the second half of this year.

"The Facebook guidance debacle will be a tough pill to swallow for the bulls and weigh on FANG names as this comes on the heels of a Netflix miss as well last week," said Daniel Ives, head of technology research at GBH Insights. "Facebook’s outlook will cause worries on the Street and that could spread to other names with stock multiples coming under attack. Facebook’s nightmare guidance will spook tech investors with a near term white knuckle period ahead."

With Facebook's previous biggest drop was a 12 percent fall in July 2012 shortly after it went public.

The broader market was on sounder footing on Thursday. The SPDR S&P 500 ETF Trust finished the day down just 0.2 percent. Investors were likely encouraged by President Donald Trump's comments following his meeting with European Commission President Jean-Claude Juncker that hinted that a trade deal between the U.S. and European Union was possible.

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— Kate Rooney contributed to this report.