Mark Zuckerberg loses $16.8 billion in a snap as Facebook plunges

26 July, 2018, 10:43 | Author: Salvatore Jensen
  • Facebook shares fall as user growth slows

Shares in Facebook, which have risen about 23 per cent this year, fell 8.6 per cent to $198.71 in trading after the bell as investors reacted to the results. His fortune tumbled in late trading Wednesday, as shares of the social media giant slid 20% in post-market trading in NY on disappointing results.

"We are investing so much in security that it will have a significant impact on our profitability", said the CEO, Mark Zuckerberg, during the call, referencing a commitment he first announced in November 2017 in an effort to clamp down on foreign election interference, misinformation and hate speech.

Revenue, fueled by mobile advertising sales, increased 42 per cent to US$13.2 billion in the quarter, Facebook said Wednesday in a statement.

The company reported net income of US$5.11 billion, or US$1.74 a share, compared with analysts' average estimate of US$1.71 a share, according to data compiled by Bloomberg.

The chief financial officer, David Wehner, 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". Its average number of monthly active users for the period came in at 2.23 billion, or about 20 million fewer than projected.

Analysts attributed the user growth shortfall largely to European privacy rules that went into effect in May.

Facebook's after-hours decline was $133 billion, according to Dow Jones data gurus.

It's a rare moment of weakness for Facebook (FB) at a time when investors are scrutinizing the company carefully to determine whether there is any lingering damage from months of bad press, user outrage and regulatory scrutiny. Analysts who follow Facebook were blindsided, asking frequently on a conference call with executives for more information on exactly how the company's financial future had changed so dramatically. The legislation, known as the General Data Protection Regulation, cost Facebook about 1 million users in Europe, he said. Facebook's results prompted selling in other Nasdaq listings, including media and advertising rivals Inc, Netflix Inc and Alphabet Inc. Facebook said that family audience measures how many people it counts across all of its apps, including the main Facebook app, Facebook Messenger, WhatsApp and Instagram.

"There is never a "right time" for a transition like this, but the team and the company boast incredible talent and will navigate this well", Stretch said on his Facebook page. There are now 2.5 billion people who used at least one of Facebook's apps in June, including Instagram, WhatsApp and Facebook.

Gene Munster, a venture capitalist at Loup Ventures, said in an email that Facebook is "entering a new period" where declining user growth will translate to slower revenue growth.

Facebook's shares had earlier closed in NY at US$217.50, a record high, and had gained 23 per cent this year.

Facebook's operating margin fell to 44 per cent in the second quarter from 47 per cent a year ago.

He added that Facebook has "a track record of resetting revenue growth and expense expectations only to turn around and exceed those expectations the following quarter".



Cubs give child a baseball to right a wrong by another fan
Not only did they make sure the youngster didn't go home empty handed, the Chicago franchise even went one better. The Cubs made up for the kid missing out on the ball by delivering two baseballs signed by Javier Baez .

Israel adopts divisive Jewish nation-state law, entrenches apartheid
Three Druze MKs, two of them members of the coalition, petitioned the High Court of Justice against the Nationality Law . Egypt alongside Jordan is the only other Arab country that has a peace treaty and significant economic ties with Israel.

Erdogan Calls Ozil, Hails Decision To Quit German Team
The DFB stressed it "would have been happy" if Ozil wanted to remain part of the national team set-up. Ozil says he and Gundogan talked about football with the president.

Pakistan election polls latest: Cricketers support Imran Khan for Prime Minister
Khan's chances of becoming prime minister on July 25 are believed to be his best since entering politics two decades ago. Gandapur served as the provincial agricultural minister in the PTI-led Khyber Pakhtunkhwa government.

Liverpool boss Klopp expects pressure to win trophies
We will go again for the championship and each kind of cup but that does not mean I can sit here and we will get it. "All good. The 28-year-old spent the second half of last season out on loan at West Brom but now admits he is delighted to be back.

Tesla says supplier discount request was for ongoing projects
Tesla had previously experienced serious production delays on its Model 3, which reportedly also impacted its supplier. In June the company said it was eliminating 3,600 jobs, or 9 percent of its staff, as part of a restructuring effort.

US Launches Campaign to Undermine Support for Iran's Leaders
Bill Hemmer pushed back, asking if Trump should be "passive" toward Iran, as American leaders have for decades. Pompeo's words come after months of protests in Iran over economic hardships and frustration with leadership.

Congressman Adam Schiff: Trump Is Acting Like He's Compromised By Russia
Asked whether he agreed with that statement , Barletta's campaign said "Russia is clearly an adversary of the United States". But another Republican, Sen. "The possibility of a civil war in Nicaragua is real", Rubio said.

CBN begins sale of Chinese Yuan to importers
The term was coined by Brazil's finance minister, Guido Mantega, who was describing a 2010 stand-off between the USA and China. India's Commerce Department had suggested keeping 25 percent tariffs on solar cells and modules imported from China on Monday.

SDCC 2018: Sony unveils new limited edition Spider-Man PS4 Pro
The console is painted "Amazing Red" and featured the signature white spider emblem created by Insomniac plastered on the console. Available as part of a Spider-Man PS4 bundle, gamers can jump into the action on September 7, when the console goes on sale.