Facebook Shares Tumble at Open

UPDATE 7/26/18 10:30 AM:  Facebook shares tumbled after the social-media company warned that its growth is slowing, igniting fears that its fortunes aren’t immune to the multiple controversies it has faced this year.

Facebook shares fell 18% to $178.60 in morning trading, erasing more than $90 billion in market value for the company, among the biggest-ever single-day drops in market cap. The stock is now trading around its May levels.

Facebook missed projections on revenue and global daily active users this quarter after struggling with data leaks and fake news scandals.


Earlier Posting....

CNBC reports the co Facebook lost about $130 billion in market value in just two hours, its steepest stock decline ever, after warning of slowing sales growth.

CNBC Graphic

Earnings per share: $1.74 vs. $1.72 per a Thomson Reuters consensus estimate

• Revenue: $13.23 billion vs. $13.36 billion per a Thomson Reuters consensus estimate
• Global daily active users (DAUs): 1.47 billion vs. 1.49 billion, according to a StreetAccount and FactSet estimate
• North American DAUs: 185 million vs. 185.4 million, according to a FactSet estimate
• European DAUs: 279 million vs. 279.4 million, according to a FactSet estimate
• Average revenue per user (ARPU): $5.97 vs. $5.95, according to a StreetAccount and FactSet estimate

Facebook said 2.5 billion people were using any of its family of apps each month, including Instagram and WhatsApp. Though Facebook-specific global DAU rates were up 11 percent year over year, it was less than Wall Street was projecting. European DAUs were down from 282 million last quarter, potentially related to the effect of the enactment of the General Data Protection Regulation (GDPR) in the European Union. The set of regulations gives users more control over their online data.

"GDPR has not had a significant (ad) revenue impact, but we also recognize it wasn't fully rolled out this quarter," said Facebook chief operating officer Sheryl Sandberg on a call with analysts, adding the company recognizes there could be more risk for decreased numbers in the Europe in the future.


Facebook shares collapse as a result of Cambridge Analytica election scandal from CNBC.


North American DAUs remained flat despite the fallout from the Cambridge Analytica data leak scandal and fake news issues. However, average revenue per user in the region rose despite the lack of growth. It reached $25.91 per user, up from $23.59 during the first quarter.

Facebook also surprisingly missed on advertising revenue projections, reached $13.04 billion compared with the StreetAccount and FactSet estimate of $13.16 billion.