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Fewer users in Europe
Facebook tech giant stocks dropped by 24% after Wednesday's release of a second-quarter report, which was lagging behind the expectations of badysts. A little later, the title recovered some of its value as stock trading in the US ended with a 20% decline. As a result, Facebook has lost nearly $ 100 billion in value. And the wealth of co-founder and CEO Mark Zuckerberg has been dropping for a few hours with $ 16.8 billion .If the stock price remains steady, it will rise from third to sixth place in the Bloomberg index worldwide Billionaires, with $ 70 billion The collapse of Facebook shares has resulted in other technology companies. Netix lost 3.6%, Alphabet – 2.4% and Twitter shares fell 6.5%
The reason for this was slightly worse than badysts' expectations, as well as comments that the growth of the the company's income will be delayed. The number of social network users in Europe is down for the first time. Daily Facebook users in Europe dropped to 279 million from 282 million in the previous quarter. In the United States and Canada, daily consumers remain at 185 million euros, but Asian consumers are increasing, which represents a total increase of 1.47 billion euros, the decline seen in Europe may result from stricter rules on the protection of personal data. (GDPR), which came into effect on May 25th. After the introduction of GDPR, Facebook asked users if they wanted to share some data about them. The company will do this with consumers from the rest of the world. If they choose to share less data, it will hurt Facebook's ability to target specific groups, which will make the company less attractive to advertisers.
The company's turnover increases by 42% to 13.2 However, investors were frightened by the remarks of CFO David Wenner, who said that revenue growth would be delayed during next two quarters. At the same time, we expect higher costs to invest in new forms of content sharing (such as missing videos)
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