Facebook sees biggest stock market value drop in history as growth slows

Facebook shares sink 8% as Q2 revenue and user growth misses analyst estimates

The second quarter of 2018 was the first full accounting period following the exposure of the Cambridge Analytica scandal in March.

But it stayed relatively steady after that, at least until the call started and David Wehner, Facebook's chief financial officer, began discussing the company's financial outlook. "As of Wednesday, Facebook Inc., lost over $100 billion in stock market value".

Facebook itself could be set for its worst day in six years as a public company as its stock dipped 20.4 percent to $173.20 in premarket trading. Shares of Facebook fell 17 per cent in the days after news broke.

Zuckerberg placed himself in the midst of yet another controversy after he received considerable backlash for justifying the lack of diligence Facebook demonstrated while handling offensive social media content posted by Holocaust deniers.

The company's earnings report showed that it is not immune to repercussions from the barrage of privacy scandals and the costs of combating abusive accounts and misinformation that it has faced. "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?"

He said: "Our total revenue-growth rates will continue to decelerate in the second half of 2018, and we expect our revenue growth rates to decline by high-single-digit percentages from prior quarters sequentially in both Q3 and Q4".

"With or without privacy issues, investors are scared that Facebook's interactions, particularly with those under 25, are falling", Sheehan said. It also is bracing for currency fluctuations as the dollar gets weaker. European DAUs were down from 282 million last quarter, potentially related to the effect of the enactment of the General Data Protection Regulation (GDPR) in the European Union.

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Read the full story at Fox News.

The Trillium Assets proposal charged that the lack of an independent board chair and oversight contributed to Facebook "missing, or mishandling, a number of severe controversies", including the social media site being used for the Russian meddling in USA elections, the sharing personal data of 87 million users with Cambridge Analytica, proliferation of fake news and others, the Business Insider said.

Yet the company said it expects an operating profit between $1.4 billion and $2.4 billion, up from $347 million a year earlier.

Facebook said 2.5 billion people were using any of its family of apps each month, including Instagram and WhatsApp. Amazon Web Services sales hit $6 billion, marking a yearly growth rate of nearly 50 percent, while the segment's profit was $1.64 billion. He said the 19 percent plunge in Facebook shares the next day stemmed from federal securities law violations by the defendants.

The threat of additional privacy regulatory setbacks remains a concern, according to analysts.

The company reported its second-quarter earnings after the bell on Wednesday.

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