Facebook Inc saw the first signs of user disenchantment in the midst of public scandals over privacy and content, with second-quarter revenue and average daily visitors missing analysts' projections.
The plummeting stock price wiped out as much as $150 billion in market capitalization and erased the stock's gains since April when Facebookannounced a surprisingly strong 63 percent rise in profit and an increase in users. That same number fell in Europe, where the company has had to comply with a strict new privacy law, known as GDPR, the Washington Postreported.
The magnitude of erosion of $120 billion can be understood if we compare it to other companies in the market: Facebook lost two Tesla in the after hour trade, i.e. within four hours.
The results missed Wall Street expectations.
Facebook suffered a blow in China on Wednesday when regulators there withdrew their approval of a company innovation hub to support local startups, the New York Times reported on Wednesday, citing a person familiar with the matter. Facebook's results prompted selling in other Nasdaq listings, including media and advertising rivals Amazon.com Inc, Netflix Inc and Alphabet Inc.
While Zuckerberg has vowed to address the problems through major changes to its business practices and investments in new resources, analysts that cover the stock have maintained a positive outlook, insisting that it would essentially be business as usual for Facebook's lucrative advertising operations.
After the General Data Protection Regulation went into effect in Europe, Facebook started asking people to check their privacy settings and make sure they wanted to share certain kinds of data.
The company charted a similar trend in terms of its monthly active users (MAUs) registering 2.23 billion users and an increase of 11 per cent year-over-year as of June 30, 2018.
Facebook's daily active users for the quarter were 1.47 billion, shy of the 1.49 billion forecast by StreetAccount and FactSet.
According to the research firm eMarketer, Facebook is expected to hold an 18 per cent share of the US$273.29 billion worldwide digital ad market, behind Google's 31 per cent.
Facebook's revenue grew at its slowest pace in nearly three years.
Instagram has grown to 1 billion monthly users from 600 million in late 2016, while Facebook's two messaging apps, Messenger and WhatsApp have each reported well over 1 billion monthly users.
Shares in Facebook plunged more than 20 percent in after-hours trading after the social network warned that it would be less profitable in the years ahead due to shifts in its ad business.
Zuckerberg said Wednesday that he was hopeful Facebook would be able to limit disinformation and fake accounts, and that the company was able to do so in elections this year in France, Mexico and Germany.
But in response to American tariffs, Beijing imposed its own on soybeans, in addition to other American agricultural products. Punishing tariffs have been introduced on imported goods from Canada, China, and the EU.
Cohen can be heard on the recording saying he needs to start a company to transfer information, and says he'll need financing. In sum, the first released Cohen tape gives the public and investigators a glimpse into the shady fix-world of Cohen.
The apology came just weeks after a Walgreens pharmacist in Peoria, Arizona, refused to give a woman her miscarriage medication. Hall had just left the doctor's office eager to receive the medication that she said would finally "affirm my identity".
SKAI TV news reported that residents and vacationers fled to nearby beaches in Rafina, where they were rescued by the coast guard. The prime minister, Tsipras , cut short his visit to neighboring Bosnia on Monday and quickly returned to Athens .
Jose Mourinho has indicated that Antonio Valencia will replace Michael Carrick as Manchester United captain this season. Martial failed to score for the second game running on United's five-match tour of the US.
Trump had long derided the deal, and fulfilled one of his key campaign promises by announcing his administration was scrapping it. In May, the US left a deal which reduced Iran's nuclear activities in return for the lifting of global sanctions.
Three kilometres before the finish line tried to attack Tom Dumoulin , but play time in the General standings, Dutchman failed. For a third straight day, Thomas heard some boos as he appeared on the podium to collect his yellow jersey in Valence .
China's Xi says 'no winner' in any trade war
But, she said, BRICS may use that adversity to seek to build a new world order, even beyond the five-member bloc. He will participate in the two-day BRICS Summit, whose theme this year is "BRICS in Africa".
Trump Says Ready to Make 'A Real Deal' With Iran
These sanctions were already in place but were suspended whilst the United States was a party to the nuclear deal. He does know those tweets don't just disappear, right? But, if anything, it at least concerns them a great deal.
Sergio Marchionne Dead At 66
Fiat Chrysler CEO Mike Manley has paid tribute to Sergio Marchionne , saying news of his death is "heartbreaking". Cape Town - Former Ferrari boss Sergio Marchionne has passed away after a brief illness.
Cubs fan takes foul ball from a child
The team tweeted a photo of the boy with two baseballs, including one signed by All-Star second baseman Javy Baez. However, a later report suggested that the man gained notoriety based on the case of misunderstanding.
Turkish FA president Demiroren defends Arsenal star Ozil
After Ozil announced his retirement, Hoeness had said in an interview to Sport Bild , " I am glad that this scare is now over ". The third-generation Turkish-German was born in Gelsenkirchen and was a key member of his country's 2014 World Cup-winning side.
Daily Rain Chances Continue This Week
Monday: Partly to mostly cloudy with scattered showers and storms and highs in the upper 70s and lower 80s. There's the potential for a few showers or thunderstorms as it passes during the afternoon.
Chelsea 'want Anthony Martial as Eden Hazard replacement'
Hazard, 27, has two years remaining on his current deal at Chelsea but has always been touted with a move to Real Madrid . He was adamant he is unfazed by the prospect of the sack, saying: "The job means risks, but also a lot of satisfaction.
Koreas to ask for return of remains from Japan
North Korea has accused South Korea of kidnapping them, while South Korea says they chose to resettle on their own will. And one of those ships that carried the coal, .is believed to have gone in and out of South Korean ports over 20 times.
Dollar on defensive against yen, euro after Trump comments
GE, which has been selling and splitting off businesses, also cut its forecast for how much cash its businesses will generate. With China showing little signs of arresting its currency's depreciation, the yuan promptly retreated to a near 13-month low.