Facebook (FB) Stock Sinks as Revenue Misses Expectations

Facebook suffers its worst loss ever in history

The company posted $13.23 billion in revenue for the second quarter, missing estimates of $13.36 billion.

As markets opened on Thursday in the US, Facebook went into freefall. Shares were down as much as 20 percent.

And for those hoping for a swift bounce back, the company told Wall Street the numbers won't get any better this year.

On Wednesday the initial fallout from Cambridge Analytica appeared in Facebook's financial results and forecast and it was a game changer. "We run the company for the long term, not just for this quarter", he said. Stamos reportedly still plans to leave the company next month, following a reorganization that the New York Times said earlier this year took away 98% of the group he managed.

Facebook has been an omnipresent part of American news for what seems like all of 2018, and rarely with a positive connotation.

It's the first time Facebook missed an earnings report since 2015.

It was the first full financial report since Facebook became embroiled in the Cambridge Analytica scandal in March.

Facebook has continued to suffer fallout from investigations into Russian manipulation of the platform during the 2016 USA presidential election.

Some analysts said Facebook's issues would not be easily resolved.

Cheddar tech reporter Alex Heath wrote that Zuckerberg has sold over $2.6 billion worth of Facebook stock since the company reported its Q1 earnings in April.

In North America, the daily user number was flat at 185 million, and in Europe it actually declined by three million people a day. Overall, average daily users rose 11 per cent from the year-ago period.

The revenue guidance from the company was "unprecedented", said Gene Munster, an analyst at Loup Ventures, in a note to investors. "And it reflects that many people use more than one of our services", he said.

Facebook has drawn investors because of its fast growth of users and profits.

Only months after a data privacy scandal, Facebook is seeing fewer frequent users than it expected, according to CBS News.

Some see the Facebook selloff as clear evidence that nothing can grow forever, especially not the world's biggest companies, especially not at the rate of nimble, promising startups.

During the second quarter, Facebook's user base also stagnated or shrank in some markets. But most experts believed the company had successfully dealt with them.

In February, the research firm eMarketer estimated that the number of Facebook users under the age of 25 would fall by about 2 million this year.

The social network's value plunged almost 24% after its disappointing Q2 earnings report and executives (including Zuckerberg) warning of slowing revenue growth.

One bright spot for Facebook has been Instagram, the photo-sharing app it bought for $1 billion in 2012.

Related News:



Most liked

EU’s Barnier rejects key part of British Brexit trade plan
Insisting there was no sidelining, Raab said later there was no tension and that he will attend all meetings with May. There will be no net reduction to staff numbers in Mr Raab's department, she said.

We'll stay in Syria until Iran leaves, says Donald Trump
He also mocked Trump's behavior stating that the president's "language is still the ethics of nightclubs and gambling halls". The outburst came less than a week after the president claimed he could make a "real deal" with Iran .

North Korea Returns Remains of US Troops
The small wooden caskets were draped in the United Nations flag and carried carefully one by one from the aircraft onto USA soil. North Korea's Kim Jong Un shakes hands with US President Donald Trump during their summit meeting in Singapore on 12 June 2018.

White House bans CNN reporter from press event for 'inappropriate' questions
By Obama's second term, frustrated reporters crafted a list of what it considered best practices for a president. But that's where aligned interests, and sometimes the dignity of the occasion, ends.

Priyanka Chopra, Nick Jonas engaged: USA media reports
As soon as the news of her engagement came out, now the buzz is that the lovebirds will exchange vows in October this year. Both Nick and Priyanka set the tongues wagging when they first made a public appearance together at last year's MET gala.

21st century's longest lunar eclipse on Friday: Bengaluru gears up
Friday's moon will be a rare one to behold as Britain experiences a blood moon or, as astronomers term it, a total lunar eclipse . Mr Kirkley said that the sunrise would begin during the eclipse which would "wash out" the colours of the moon as it turned red.

Chris Wood surges up Open leaderboard
His anger over his mistakes was tempered by perspective, comparing it to Serena Williams losing in the finals at Wimbledon. Rose is No. 3 and almost joined them until he made an 18-foot birdie putt on the last hole to make the cut on the number.

Why Twitter wont ban Trump even after threatening Iran
Iran has rejected talks with the U.S. , and Mr Rouhani has accused the USA of stoking an "economic war". Mr Pompeo said: "The proud Iranian people are not staying silent about their government's many abuses".

Donald Trump says 'too bad' after Cohen audio recording released
The other recordings are of conversations in which Cohen mentions the president to someone else, Giuliani said. Trump's lawyer, Rudy Giuliani provided CNN with a transcript that says Trump said, "Don't pay with cash".

New Fiat Chrysler boss must deliver Marchionne plan
From 2015, he also led Ram , producing big pick-ups and vans under the Chrysler badge after it and Fiat had merged in 2014. Another position vacated by Marchionne was as Chairman of truck and tractor maker CNH Industrials.

Nerve agent attack victim discharged from hospital
The Organisation for the Prohibition of Chemical Weapons (OPCW) will analyse the substance before reporting back its conclusions. She said Public Health England has determined that Rowley "poses no risk to the public" now that he is out of the hospital.

China Rejects Donald Trump's Accusations Of Currency Manipulation
Benchmark 10-year US notes last fell 14/32 in price to yield 2.8968 percent, from 2.847 percent late on Thursday. The BOJ, in turn, offered to buy an unlimited amount of five- to- 10-year Japanese government bonds on Monday.

Record Heat Broils Japan. Beware Of "Cruelly Hot Weather", Officials Warn
Excessive heat was also observed in both South and North Korea on Monday, the Associated Press reported . Thousands of people in Japan have been rushed to hospitals with heatstroke symptoms during the heatwave.

N. Korea seeking 'bold move' from US
Earlier this month, US Secretary of State Mike Pompeo visited North Korea and held discussions on North Korea's denuclearisation. Trump said last week that US relations with North Korea "are very good and the process is moving along".

Pompeo: N. Korea sanctions key
A major sticking point in ongoing talks is Washington's plan for North Korea's complete, verifiable and irreversible denuclearization.