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FACEBOOK shares went into free fall on Thursday (AEST) while an incredibly weak financial outlook sparked new worries for the social networking giant as it tries to recover from the news. 39, the impact of scandals and data protection investigations. Facebook sales fell by about 21%, which lost $ 130 billion in market value if the decline is confirmed Thursday.
Second Quarter Report Raises Sales
Earnings rose 31 percent in the second quarter to $ 5.1 billion; The turnover has increased 42% to 13.2 billion US dollars, slightly below most forecasts
The pressure on sales has accelerated when Chief Financial Officer David Wehner has warned badysts of a weaker outlook over the coming quarter. growth slowed down in the second quarter and will decline with high percentages, adding that "we are also giving users of our services more choice in terms of data privacy, which could have an impact on the growth of our data. earnings. "
According to Jefferies & Co.'s badyst, Brent Thill," many investors are struggling to reconcile this deceleration … It seems that the magnitude is beyond all that that we saw."
Ross Gerber, an badyst at Gerber Kawasaki, said the latest figures suggest that the trend could turn for Facebook and other social networks.
"Social media has peaked," Gerber said on Twitter. "We told you the last quarter and now we see it."
INVESTING IN SECURITY AND SECURITY
CEO Mark Zuckerberg said the tech giant is investing heavily in safety, security and privacy. "After being shaken by worries of manipulation of the platform to spread misinformation and misuse of user data." 19659003 "We are investing so much in safety that it will start to affect our profitability, we are starting to see that" But he added that "we are running this company for the long term, not for the next quarter." Zuckerberg said that He did not expect a significant impact of the tumult on the data of the last quarter suggest some cooling.
The update showed that the key measure of monthly active users rose 11 percent to 2.23 billion, below most estimates of 2.25 billion, while Zuckerberg said that Facebook has lost about a million users in Europe due to the implementation of the new EU data protection rules, but noted that many Europeans "want to use the context"
Almost everything Facebook's business figure – $ 13 billion out of a total of $ 13.2 billion – comes from online advertising, a sector dominated by the California social network.With the Google rival of Silicon Valley [19659002] Although Facebook shares collapsed after the Cambridge Analytica scandal early this year, the stock has risen sharply and reached record highs this month.
eMarketer studies should represent 18% of the global digital advertising market of 273.29 billion US dollars, behind the 31% of Google.
According to the research firm, Instagram, owned by Facebook is offsetting some of the slowdown in social network growth and will generate worldwide advertising revenue of $ 8.06 billion this year.
Separately this week, Facebook legal counsel Colin Stretch, who advised the company through a series of "There's never any" good time "for a transition like this but the team and the company have incredible talent and will navigate well, "he said. Stretch said on his Facebook page.
