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.

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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.

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