• News
  • Finance

Facebook stock falls 24 percent following report of slow user growth

Facebook stock falls 24 percent following report of slow user growth

US and Canadian Facebook visitors provided an average revenue per user (ARPU) in the latest quarter of $25.91, the vast majority from advertising, while the ARPU of Europeans was $8.76, according to figures provided by Facebook. The social media company has contended for years with criticism about its content policies, its failure to safeguard private data and its changing rules for advertisers.

Facebook reported on Wednesday that growth in digital advertising sales and in the number of its users had decelerated in the second quarter.

In midday trading Thursday, the company's market value (the number of outstanding shares multiplied by the value of a single stock), fell by more than $122 billion.

A political analytics firm, Cambridge Analytica, acquired the data of tens of millions of Facebook users from a researcher who used a quiz app that was shared on the platform.

While Facebook was fined and CEO Mark Zuckerburg apologised repeatedly, Facebook's reputation has been damaged and it is literally paying the price. In the United Kingdom, especially, Facebook drew the ire of lawmakers, who hit the social network with a $650,000 fine, the maximum amount allowable for mishandling user data.

The drop in European visitors was potentially due to the continuous revelations highlighted there about Facebook's breaches and weaknesses, and the implementation of the European Union and related entities' General Data Protection Regulation (GDPR) in late May. Facebook's shares had gained more than 10 percent over the last month and closed higher at $217.50 on Wednesday, before the company reported earnings. The owner of the world's largest paid online TV network reported slower subscriber growth in the second quarter, and the company's stock has fallen almost 10 per cent since last week. We're starting to see that this quarter.

Facebook shares sink 8% as Q2 revenue and user growth misses analyst estimates
Facebook Shares Tumble More Than 20 Percent On Poor Earnings

The 19 percent loss in Facebook's stock chopped $119 billion off its market value.

The new laws were only in effect for one month of the quarter, which means the company may feel more of an impact in the current quarter.

Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma, in recent years has trimmed, but not eliminated, the amount of Facebook shares in his clients' accounts, and he said he sees the company as a three-year investment.

"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. The company said headcount was 30,275 as of June 30 - an increase of 47 percent year over year.

The plunge followed Facebook's warning late Wednesday that its revenue growth will slow down significantly for at least the remainder of the year and that expenses will continue to skyrocket.




Leave Your Comment

Leave Your Comment


Latest News

  • 'Blood moon' to appear for 21st century's longest lunar eclipse on Friday

    'Blood moon' to appear for 21st century's longest lunar eclipse on Friday

    The Moon will be gradually covered by the Earth's shadow and the totality phase will begin at 1h 00m IST on July 28. A Super Blue Blood Moon rises behind the Camlica Mosque on January 31, 2018 in Istanbul, Turkey.
    France crowned world champions

    France crowned world champions

    The national team, for whom he won 103 caps and also the European Championship as a player, came calling in 2012. Although France were crowned world champions, Giroud has flattered to deceive on a personal level.
    Journalist rules out Man United selling 25-year-old France star

    Journalist rules out Man United selling 25-year-old France star

    Maybe Jose Mourinho could take a leaf out of Didier Deschamps' book and give Pogba more freedom on the pitch. Croatia's strength of personality will serve them well in the final against France.
  • Israel fired

    Israel fired "David's Sling" interceptors at rockets launched in Syria

    Some of Iran's military bases in Syria are next to Syrian military compounds, according to the intelligence source. The Syrian government accused the White Helmets of being agents of foreign enemies and working with insurgents.
    Prince Louis' christening will feature 3 important royal traditions

    Prince Louis' christening will feature 3 important royal traditions

    The princess Charlotte , who has a surprising point in common with the princes George and Louis, and it continues to be noticed. She kept her eye on the press pack as she and the rest of the family headed off for a private afternoon tea at Clarence House.
    Angelique Kerber wins first Wimbledon Title after defeating Serena Williams

    Angelique Kerber wins first Wimbledon Title after defeating Serena Williams

    Djokovic saved three set points before taking the third-set tiebreaker to establish a 6-4, 3-6, 7-6 (9) lead. If you watched the video, Serena's quote was a little different than what the @ Wimbledon tweet reads.
  • North Korea begins dismantling key test site, satellite imagery suggests

    North Korea begins dismantling key test site, satellite imagery suggests

    Trump tweets: "A Rocket has not been launched by North Korea in 9 months". President is losing his cool with the lack of progress with North Korea.
    Kevin Anderson vs John Isner, Wimbledon 2018 semi-final

    Kevin Anderson vs John Isner, Wimbledon 2018 semi-final

    But Isner was playing his first Grand Slam semifinal while the South African was in his second after making the US Open final. Prior to facing the veteran American, Anderson had defeated the heavy favorite and defending champion Roger Federer .
    China's trade surplus with United States  swells in June

    China's trade surplus with United States swells in June

    President Donald Trump said the United States was in a nasty trade battle with China, but things would ultimately work out. The United States and China could reopen talks on trade but only if Beijing is willing to make significant changes, U.S.
  • Arsenal boss Unai Emery offers support to Mesut Ozil

    Arsenal boss Unai Emery offers support to Mesut Ozil

    Bayern Munich president Uli Hoeness even said that Ozil's exit was welcome news, claiming he had been " playing s*** for years ". Before reaching those issues it should be pointed out that Ozil himself can not , of course, escape scrutiny.
    US Treasury Secretary denies any chance or a currency war

    US Treasury Secretary denies any chance or a currency war

    Investors are now looking ahead to an important meeting between Trump and European Commission president Jean-Claude Juncker. MSCI's broadest index of Asia-Pacific shares outside Japan .miapj0000pus was up a touch waiting for other markets to open.
    Pakistan mourns after Mastung carnage kills 128

    Pakistan mourns after Mastung carnage kills 128

    Local officials say the attacker detonated a bomb inside a crowded compound where the campaign rally was being held. He has accused Pakistan's powerful security establishment of conspiring against him ahead of the elections.
  • Celebrities offer Demi Lovato support after reports of hospitalization for apparent overdose

    Celebrities offer Demi Lovato support after reports of hospitalization for apparent overdose

    In February, Lovato told CBS News that her single, " Tell Me You Love Me " was actually about conquering her addiction as well. While police didn't name the victim, TMZ and People identified the victim as Demi Lovato . "I promise I'll get help".
    Trump's threat of tariffs on all $505bn of Chinese imports knocks markets

    Trump's threat of tariffs on all $505bn of Chinese imports knocks markets

    Trump told CNBC the hikes could damage America's ongoing economic recovery from the Great Recession. President Donald Trump has threatened tariffs on all Chinese goods imported by the US .

    Astronomers Serendipitously Discover 12 Moons Around Jupiter

    Scientists classified the findings as 11 "normal" outer moons, and another that they are calling an " oddball " for its odd orbit. The orbit of a dozen previously unknown moons around Jupiter are shown here, including the " oddball " discovery, Valetudo.
  • Trump plans emergency aid to farmers affected by his tariffs

    Trump plans emergency aid to farmers affected by his tariffs

    The Agriculture Department is announcing a $ 12 billion " short-term " plan to help US farmers hurt by retaliatory tariffs. He notes that countries "that have treated us unfairly on trade for years" are coming to Washington to negotiate.
    Tekashi 6ix9ine Hospitalized After Brutal Attack

    Tekashi 6ix9ine Hospitalized After Brutal Attack

    He drove home after the shoot wrapped around 4 a.m., but when he got there, another vehicle was blocking his driveway. TMZ reports , citing unnamed sources, that the men stole around $750,000 in jewelry and more than $15,000 in cash.
    What the Tech? Amazon Prime Day problems

    What the Tech? Amazon Prime Day problems

    Amazon's cloud infrastructure business quietly accounts for almost three-quarters of Amazon's operating income. July 17 was the biggest sales day for smart home devices in Amazon history, with over a million devices sold.

Breaking News



Recommended

CNN Airs Donald Trump Recording Secretly Made His Then-Lawyer Michael Cohen

Here's the point: the president has run through a succession of lawyers in connection with the Democrats' many attacks on him. Common Cause says the tape bolstered their argument that Trump knew about the payment and that it was potentially illegal.

U.S. pushes United Nations to maintain sanctions pressure on N Korea

The secretary of state said he and President Donald Trump were "upbeat" about the prospects of North Korea fulfilling its promise. At the time, Kim committed to "work toward denuclearization".

Newswatch: Italian Molinari wins British Open

Molinari clinched it with a driver that skirted the edge of a pot bunker, leaving him a lob wedge from 112 yards to 5 feet. Oh, yeah", said Woods, who finished the tournament finished tied for sixth, three shots behind playing partner Molinari.

Carmelo Anthony has told friends he’ll join Rockets

Anthony is expected to still receive the full $27.9 million he's owed for next season in the buyout with the Hawks. Houston lost forwards Trevor Ariza and Luc Mbah a Moute in free agency.

Samsung's foldable Galaxy X smartphone could launch in early 2019

Samsung sent out press invitations for an August 9 "Unpacked" event in NY , where's it's expected to announce the Galaxy Note 9 . In addition to the fresh render leaked by Blass, the first hands-on images of the Galaxy Note 9 have been spotted on SlashLeaks .

Maurizio Sarri discusses Chelsea transfer plans amid Gary Cahill Man Utd links

Chelsea's pre-season training began under Sarri's predecessor, Antonio Conte . "I hope this initial time can be shortened. Zola spent seven years at the club between 1996 and 2003 and is one of the most popular players in the club's history.

French players’ social media videos of World Cup celebrations

Several Paris Metro stations are temporarily adjusting their names to honor France's World Cup champions. Celebrations were spread across the nation, and among still-dazed French players themselves.

Maria Butina: Feds charge Russian national for acting as covert Kremlin agent

It said that Butina had broken United States law by not disclosing that she was acting on behalf of the Russian government. Butina has previously said her outreach to American political operatives was purely out of a shared passion for firearms.

British Diver Who Helped Rescue Trapped Boys in Thailand Returns to UK

Expert divers from the Thai Navy SEALs, experienced in conventional diving situations, were faced with an unprecedented challenge. John Volanthen, one of the two British divers who found the boys, played down the gallantry.

Why It's Always a Bad Idea to Underestimate Serena Williams

She won the grass-court tournament the last two times she played it, in 2015 and 2016, before missing it past year while pregnant. Williams' pregnancy was not without complications, as she told the BBC this week : "It's no secret I had a super tough delivery".