Facebook Lost $120 Billion in Market Value over Slow Growth
Facing global backlash over the massive Cambridge Analytica data scandal, Facebook stock nosedived 20 per cent — wiping over $120 billion off the visitor'southward market value — later on its revenue and user growth in the second quarter of 2018 barbarous curt of investor expectations.
The social media giant tardily on Midweek reported two.23 billion monthly agile users (MAUs) — an increment of xi per centum (year-over-year) which was its slowest growth in more than ii years.
Facebook reported revenue of $13.2 billion — a gain of 42 percent but missing analyst expectation of $13.3 billion. It ended the quarter with $42.3 billion in greenbacks and equivalents.
The social media platform earned $five.1 billion, or $1.74 per share, for the second quarter.
"Our community and business proceed to grow rapidly. We are committed to investing to keep people rubber and secure, and to keep building meaningful new means to help people connect," said CEO Mark Zuckerberg in a statement.
The daily active users (DAUs) were 1.47 billion every bit of June 30, as well an increase of 11 per cent year-over-year.
Analysts attributed the ho-hum user growth to the European privacy law that went into result on May 25.
Mobile advertising revenue represented approximately 91 percent of advertising acquirement for the second quarter of 2018 — up from approximately 87 percentage of advertisement acquirement in the second quarter of 2017.
Facebook currently employs 30,275 people — an increase of 47 per cent year-over-yr.
"We expect revenue growth rates to continue to decelerate in the second half," said David Wehner, Chief Financial Officer.
In April, Facebook had warned investors that more users' data scandals in the future may adversely affect the social networking giant'due south reputation and brand image.
Appearing earlier the U.s. Congress, Zuckerberg told the lawmakers that his own personal data was part of 87 million users' that was "improperly shared" with the British political consultancy firm Cambridge Analytica.
After the Cambridge Analytica data scandal, Facebook suspended Boston-based data analytics company Ruddy Hexagon over concerns that it harvested users' data.
Source: https://beebom.com/facebook-lost-120-billion-in-market-value-over-slow-growth/
Posted by: nettlesbansespoll.blogspot.com
0 Response to "Facebook Lost $120 Billion in Market Value over Slow Growth"
Post a Comment