Home » Money

Facebook stock plunges more than 20 percent

26 July, 2018, 13:27 | Author: Sara Gill
  • El jefe de Facebook Mark Zuckerberg en un evento en San Jose California el 1 de mayo del 2018

As part of its second quarter of 2018 earnings announcement on Wednesday, the company trumpeted a huge jump in both year-over-year revenue (42 percent) and profit (31 percent). Fourteen analysts surveyed by Zacks Investment Research expected $13.4 billion.

Facebook Inc fell short of analysts' estimates for monthly active users on Wednesday and reported lower-than-expected quarterly revenue, months after the social network became embroiled in a data scandal affecting millions of users.

Facebook's daily active users in Europe declined by 3 million amid the new regulation.

Shares plunged as much as 24 percent after Chief Financial Officer David Wehner said revenue growth rates would decline in the third and fourth quarters.

The magnitude of erosion of $120 billion can be understood if we compare it to other companies in the market: Facebook lost two Tesla in the after hour trade, i.e. within four hours.

Facebook's fortunes shifted in under two hours as the company first reported revenue and user growth that missed expectations and then issued warnings about future growth and expenses.

Ross Gerber, an analyst at Gerber Kawasaki, said the latest figures suggest that the tide may be turning for Facebook and other social networks.


Facebook's daily active users for the quarter were 1.47 billion, shy of the 1.49 billion forecast by StreetAccount and FactSet.

On Wednesday afternoon's earnings call with analysts, Facebook CEO Mark Zuckerberg announced another way the social network measures and breaks out users: about 2.5 billion people use at least one Facebook-owned app - Facebook, WhatsApp, Instagram, and Messenger - each day.

Social networking giant Facebook (NASDAQ:FB) reported its Q2 2018 earnings today and we have to say that the tech giant has seen slightly better days. Facebook said mobile made up 91 per cent of ad revenue in the recent period, compared with about 87 per cent a year earlier. Facebook has largely saturated in the United States and Western European markets, and is now looking to countries such as Brazil, India and Indonesia for new users.

Facebook's 2.23 billion monthly active users and 1.47 billion daily active users were both up 11 percent from past year but also just shy of analyst predictions of 2.25 billion and 1.48 billion, respectively.

Zuckerberg said Wednesday that he was hopeful Facebook would be able to limit disinformation and fake accounts, and that the company was able to do so in elections this year in France, Mexico and Germany.

Shares in the technology company and publisher plunged by nearly 25 per cent in late trading after David Wehner, chief financial officer, said that Facebook's revenue growth would decelerate in the second half of the year and expenses would soar in 2019.

Wehner said the "deceleration", as he termed it, is "a combination of factors", including the rising US dollar; what Wehner called the company's newfound "focus on growing engaging new experiences like Stories and promoting of those; giving greater controls to users of the service people who use service for privacy".

Recommended:



Popular

Trump says China being 'vicious' by hitting USA farmers with tariffs
That puts farmer assistance below the amounts that would trigger complaints before the World Trade Organization , the USDA said. Trump also has been under pressure from farm state lawmakers to back away from imposing tariffs.

UK to set out more details of Brexit plans on Tuesday-minister
But he reiterated it was also increasing no-deal planning. "I will be deputising for the Prime Minister in the negotiations". The pro-EU Tory said: "We have been calling for some time for the Government to set out the full consequences of no deal".

Pakistan Race Tightens on Eve of Historic Vote
The counting of votes will be done on the spot soon after polling is concluded and results will be announced within 24 hours. Tens of millions of Pakistanis will vote on Wednesday in an election that could have repercussions for the entire region.

Cort Nielsen wins Stage 15, Thomas keeps Tour lead on Froome
Rafal Majka was leading the race on the final ascent when he barely avoided a fan who appeared to be pushed onto the road. Serge Pauwels of Dimension Data was knocked out of the race after breaking his right elbow in a crash near the end.

Starwatch: red marvel that is a lunar eclipse
Earlier in the year, the super blood moon made our months roller coasters of up and down emotions and this is no different. Though the United States won't see a lunar eclipse, the moon will still be full and appear reddish/orange Friday evening.

Marchionne replaced as head of carmaker Fiat Chrysler
He will be tasked with implementing FCA's five-year plan spearheaded by Marchionne and announced in June. CNH Industrial, which Marchionne also chairs, named Suzanna Heywood, as his replacement.

Duck boats exempt from Missouri life jacket law
Duck boats are amphibious vessels that travel on both land and water, and are popular among tourists in major cities. The boats were originally designed for the military, specifically to transport troops and supplies in World War II.

Pakistan sets world record of most 5-ODIs clean-sweeps
He also became the country's highest scorer in any ODI, surpassing Saeed Anwar's 21-year old record of 194 runs against India . He sits behind only Indian captain Virat Kohli, who scored 558 runs earlier this year against South Africa .

Top intelligence official says he meant no disrespect to Trump
Then following surprised laughter, Mr Coats said: "Okay, that's going to be special". "To me, that's beyond comprehension". By contrast, 80 percent of Democrats now say Trump has weakened USA leadership around the world.

Pep Guardiola hoping to find a solution for 'professional' Joe Hart
Guardiola said: "What happened last season was a effect of the work we did two seasons ago". If they are not mentally and physically ready, they won't come back.