Facebook just had the worst day in stock market history
Facebook just had the worst day in stock market history
Facebook shares sink 8% as Q2 revenue and user growth misses analyst estimates
28 July, 2018, 19:49
The plunge came after Facebook executives said the company expected a significant slowdown in its revenue growth in the years ahead.
That "bombshell", as one analyst termed it, played into concerns on Wall Street that Facebook's model could be under threat after a year dominated by efforts to head off concerns over privacy and its role in global news flow.
Facebook Chief Financial Officer David Wehner said on a conference call with investors that Facebook is "putting privacy first" after the Cambridge Analytica scandal triggered a wave of disgusting press, customer angst and regulatory scrutiny around the world. Facebook's stock price now stands at $176.26, having dropped by a massive 18.9% from the $217.50 value that it stood at before the company's earnings call. Facebook's loss was the biggest single-day drop since it started trading publicly in May 2012.
Shares in Alphabet (:GOOGL.O) closed up 0.7 percent, while those in Apple Inc (:AAPL.O) fell 0.3 percent and Netflix Inc (:NFLX.O) closed barely higher.
After the earnings report, executives worked to explain the potential of Facebook's other properties, not just the main social network, to fuel growth.
Based on the company's recent second-quarter financials, Facebook has a more conservative outlook on the future, expecting revenue growth to decline in the coming years.
He cited currency fluctuations and a shift in usage to features where Facebook shows less advertising or charges less due to lower demand.
Pakistan willing to improve ties with India, says Imran Khan
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Now new European data rules could make life tougher for Facebook. Like Facebook, Instagram depends on ads to generate revenue, and Stories is supposed to help sell more ads. But the ongoing scandals have caused many people to take another look, he said.
The new $10 million bump works out to an extra $27,000 a day Facebook is spending on protecting its chief.
Growth in the number of users who logged in each day fell short, too, up 11 percent year-over-year at 1.47 billion but still less than the 1.49 billion anticipated. Commercialisation of those apps is nascent.
"As we have written about extensively, the advertising industry - and digital advertising no less - has limits to growth, which we think is the primary factor constraining Facebook's revenue opportunity", Wieser said in a note after the earnings.
Misinformation on WhatsApp contributing to mob killings in India have added to the pressure on Facebook to re-evaluate how its services maintain security and decorum.
Some 300 Palestinians - a lot of them assailants, Israel says - have also been killed in that period, according to news agencies. It came hours after Israeli tank and artillery fire in the southeast of the Gaza Strip killed and injured three Hamas fighters.
Atletico Madrid and Arsenal will face off in a pre-season friendly during the International Champions Cup on Thursday, July 26 . Speaking to Sky Sports, Ramsey said: "We'll see what happens, but my agent and the club are talking".
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Trump lawyer Rudy Giuliani has said the proposed payment was a personal matter and not subject to campaign finance law. Cohen was proposing to pay AMI, which owns the National Enquirer newspaper, for the rights to McDougal's story.
Sacha Baron Cohen is returning to TV for the first time in a decade with this new show for USA cable network Showtime . The aforementioned programme, is pitched as arming children as young as three to protect schools from armed shooters.
Pompeo responded that North Korea's leadership "indicated that they fully understand the scope of what denuclearization entails". Menendez repeatedly asked whether Trump and Putin discussed sanctions related to Crimea.
FILE PHOTO: Facebook logo is seen at a start-up companies gathering at Paris' Station F in Paris, France on January 17, 2017. Facebook on Wednesday reported second-quarter sales and user growth that fell short of analysts' projections.
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Irishman on honeymoon in Greece confirmed dead by family
But, according to Reuters , Tsipras and other Greek officials "have expressed misgivings" that several fires broke out at once. Smoke fills the sky as members of the emergency services block a road near Kineta, west of Athens , Monday, July 23, 2018.