Zuckerberg loses $16 billion in record Facebook fall

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

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

While the company did post a 42% year-over-year revenue growth this quarter, its management expects that Revenues will decline by high single-digits in both the third and fourth quarters, sequentially.

Even though things are now looking dismal for Facebook, there are a handful of Wall Street analysts who are holding to a positive outlook for the company, even though they conceded that the abysmal second quarter results were worse than anticipated - not to mention the fact that European privacy laws just went into effect at the end of May.

Still, investors weren't prepared for numerous bombshells dropped by Facebook Chief Financial Officer David Wehner.

The stock drop, to its lowest levels in almost three months, wiped out almost $120 billion in market capitalization for Facebook and dragged down other internet and tech stocks including Twitter and Snap.

Facebook shares fell another 0.8 per cent on Friday, closing at US$174.89 on the Nasdaq.

After the earnings report, executives worked to explain the potential of Facebook's other properties, not just the main social network, to fuel growth. The earnings report follows a tumultuous quarter for Facebook, which has faced questions from Congress and others about handling of misinformation on its site and user privacy.

This is the second time this year Facebook's stock has taken such a dramatic downturn.

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Facebook on Wednesday reported second-quarter sales and user growth that fell short of analysts' projections.

At the same time, it could be an indication that the appeal of Facebook is slowly wearing thin, especially following all the privacy issues it has recently suffered. It also is bracing for currency fluctuations as the dollar gets weaker.

The change was due to the European Union implementing the General Data Protection Regulations, which imposed new rules on how internet companies store customer data.

Read the full story at Fox News. The company is still grappling with blowback from the revelation that political data firm Cambridge Analytica accessed data on up to 87 million Facebook (FB) users. A decade ago, nearly no one could have imagined that Facebook would have more than 2 billion users, much less that its family of apps - Instagram, WhatsApp and Messenger - would also count members in the billions. Commercialisation of those apps is nascent.

Costs in this area rose by around a half compared to the same period past year.

The news also hit Mark Zuckerberg's pocket. "Looking beyond 2018, we anticipate that total expense growth will exceed revenue growth in 2019".

Facebook reported US$5.1 billion in profit, or US$1.74 per share, compared with the average estimates of US$5.1 billion and US$1.72 per share among research gathered by Thomson Reuters.

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