Facebook stock plunges in after-hours trading following earnings report

28 July, 2018, 10:11 | Author: Corey Lynch
  • Facebook lost more than $100 billion US in market capitalization in early trading Thursday

"Certainly, the frequent references to the other platforms available such as Instagram and the new revenue metric of how many people use at least one of the Facebook apps each month send a message that this is a company looking to find ways of becoming more than just a social media platform".

Once a darling of Wall Street, Facebook has always been one of the market's best-performing tech stocks but with its announcement this week that the company's growth may be slowing after an, it's becoming apparent Facebook's prosperity isn't guaranteed, reports CBS News' Bianna Golodryga.

In the second quarter, Facebook lost roughly 1 million monthly users, and 3 million daily users in Europe.

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

Facebook shares dived almost 20% as markets opened after the social media giant warned it expects weaker growth. 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. Facebook's shares had gained more than 10 percent over the last month and closed higher at $217.50 on Wednesday, before the company reported earnings.

Facebook had the largest-ever loss of value in one day for a U.S. traded company.

After all, from what little we know, the kids these days seem to be into Snapchat and Fortnite rather than posting semi-snide comments about the bridesmaid dress your friend has just got for Aunty Edwina's third marriage.




"With or without privacy issues, investors are scared that Facebook's interactions, particularly with those under 25, are falling", Sheehan said.

That almighty crash comes as the result of Facebook shares collapsing by 18% when the New York Stock Exchange opened its doors.

Facebook's stock plummeted following a dire second quarter briefing focusing on slowing ad market growth and increased spending on data security following the Cambridge Analytica scandal and new European Union privacy rules.

Founder and CEO Mark Zuckerberg, who has a 13 percent stake in Facebook, saw his fortune dropped by more than $12 billion in less than 24 hours, to around $74 billion.

"A CEO who also serves as chair can exert excessive influence on the board and its agenda, weakening the board's oversight of management", the proposal says, according to the Business Insider.

More likely, though, market buzzards are holding off because of how quickly some analysts are turning on the company. But the dollar's decline this year will reduce the dollar value of Facebook's foreign revenue.

But that staggering statistic wasn't enough to distract investors from the bad news the company had to share: It expects significantly decreased revenue growth rates and operating margins in the years ahead.

Recommended:

  • Putin invites Trump to Moscow as new allegations emerge about 2016 meeting

    He has also asked that retaliatory action be taken against them. The president sometimes takes questions during the sessions. We are ready to invite President Trump to Moscow.
    Lowry mum on Raptors, speaks only about USA Basketball

    Lowry mum on Raptors, speaks only about USA Basketball

    Leonard reportedly demanded a trade out of San Antonio after he had a tense relationship with the team during his rehab process. Green noted that he strained his groin against Boston in December, but still played 70 games over the course of the season.
    Nick Jonas and Priyanka Chopra are reportedly engaged and fans are crying

    Nick Jonas and Priyanka Chopra are reportedly engaged and fans are crying

    Nick Jonas , 25, and Priyanka Chopra, 36 met during the Met Gala in NY past year , after which they kept in touch. The two lookers only started dating in May, bringing their relationship length to a grand total of two months.
  • Texas Rangers trade Cole Hamels to Chicago Cubs

    Texas Rangers trade Cole Hamels to Chicago Cubs

    The Chicago Cubs are gambling a change of scenery and a pennant race will help Cole Hamels return to form. Butler, 27, had a 4.08 ERA in eight relief appearances this season. "He's a great competitor".
    Death Toll From ISIS Attacks In Syria Tops 200

    Death Toll From ISIS Attacks In Syria Tops 200

    The government controls nearly all of Sweida province but IS retains a presence in desert areas of its north and east. They have managed to liberate dozens of villages and towns from foreign-backed militants.
    Riders hit by tear gas on Tour de France

    Riders hit by tear gas on Tour de France

    Froome sits second in the general classification, 60.39 seconds behind Sky teammate Thomas. I'm sad for Yates who crashed but it could have happened to me.
  • Francesco Molinari hopes Open win inspires older brother Edoardo

    Francesco Molinari hopes Open win inspires older brother Edoardo

    But McIlroy produced just the sort of burst he has become renowned for. Woods held the lead after 60 holes at the 147th Open Championship .
    Trump and European Union come to vague agreement to reduce trade tensions

    Trump and European Union come to vague agreement to reduce trade tensions

    The two would work for zero tariffs, zero non-tariff barriers, and zero subsidies on non-auto goods, he said . After their meeting, Mr Juncker thanked the US President and claimed it was a "good, constructive meeting".
    Police identify suspect in Toronto shooting attack

    Police identify suspect in Toronto shooting attack

    Fourteen people, including a young girl, were shot in the incident near downtown Toronto, police in Canada's biggest city said. The 13 wounded ranged in age from 10 to 59, and suffered injuries ranging from serious to minor, Saunders said.
  • Homes destroyed and at least one dead in explosive wildfires

    Homes destroyed and at least one dead in explosive wildfires

    Videos from the scene show multiple homes in flames, and forest officials said at least five residences have been destroyed. Authorities ordered residents to leave Idyllwild and several neighboring communities, home to about 12,000 people.
    Pakistan's Imran Khan declares election win for his party

    Pakistan's Imran Khan declares election win for his party

    A single party will need at least 137 of the directly elected seats to be able to form the government on its own. Jubilant Khan supporters danced to the beat of drums at his party headquarters in Islamabad , sensing a victory.
    Greece appeals for help after deadly fires ravage coast

    Greece appeals for help after deadly fires ravage coast

    In Finland's northernmost Lapland province, fires have ravaged woods and grassland close to the border with Russian Federation . Firefighters stand on a cliff top where burned trees hug the coastline in Mati east of Athens , Tuesday, July 24, 2018.


Popular

WTF Moments from Roseanne Barr's 'Hannity' interview
She shared: "I'm not a racist and the people who voted for Trump, they're not racist either, and Trump isn't a racist, sorry". Barr said it upset her to think how the accusations affected minority members of her family. "That's what was in my head".

Arsenal's Mesut Ozil makes first public appearance since controversial Germany withdrawal
Arsenal take on Atletico Madrid at the National Stadium before they also play Paris St Germain on Sunday. The German Football Association said it " emphatically rejected " Ozil's accusations of racism.

Facebook Shares Tumble More Than 20 Percent On Poor Earnings
Together, the entire Facebook suite of products has 2.5 billion unique monthly users, the company disclosed for the first time. The company is grappling with new data laws in Europe, criticism over its content policies and privacy issues.

Half of United States voters think Russian Federation has damaging information on Trump
Sixty-one percent of the survey's respondents said strengthening U.S. -Russia relations is in the nation's best interests. Mr Trump then told CBS he held Mr Putin personally responsible for Moscow's meddling in the 2016 United States elections.

Spieth's title defense at British Open ends without a bang
England's Eddie Pepperell had set the early clubhouse target after a superb 67 left him five under par, four shots off the lead. But it wasn't going to spoil the 42-year-old American's day. "I picked up where I left off and it was a great day's work".

Trump to Give Farmers Aid, but Farmers Aren't Thrilled
Either a country which has treated the United States unfairly on Trade negotiates a fair deal, or it gets hit with Tariffs. The U.S. has also imposed tariffs on $34 billion in Chinese products and threatened tariffs on $500 billion more in goods.

Jose Mourinho allows Anthony Martial to leave pre-season
The 25-year-old had a hard season at United last season, with Mourinho dropping him at several points' through-out last campaign. Reflecting on his displays in Russian Federation he continued: "it is the ideal setting for a player like him to give his best".

CNN obtains secret Trump-Cohen tape
But Cohen's attorney Lanny Davis told CNN Tuesday evening that it's their opinion that Trump is heard suggesting the cash payment. The recording proves that President Trump had knowledge of a proposal to buy the rights to the story of Karen McDougal .

Sen. Graham Says Trump Told Iran: 'There's a New Sheriff in Town'
But Ghaemi, speaking via Skype, said the Trump administration's other policies hurt average Iranians. Mr Trump tweeted on Sunday that if Iran threatened the USA , it would "suffer consequences ".

Military fans out across Pakistan ahead of election
The prime minister-designate of Pakistan's Muslim League party pledges to emulate Mahathir in developing Pakistan. A third candidate, Bilawal Bhutto Zadari, from the Pakistan People's Party, could be the kingmaker.