Facebook actions plunge into history as data scandals weigh heavily

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Facebook CEO Mark Zuckerberg. Facebook told Wall Street that the numbers will not improve this year. Photo: Reuters "title =" Facebook CEO Mark Zuckerberg. Facebook told Wall Street that the numbers will not improve this year. Photo: Reuters "clbad =" img-responsive "/> <p> Facebook CEO Mark Zuckerberg Facebook told Wall Street that the numbers will not improve this year Photo: Reuters </p> </div> <p><b> San Francisco: </b> Facebook Inc. Stocks fell 20% on Thursday after the social media company showed signs of slowing growth after months of scandals and criticism that punched profits Wednesday, Facebook announced second-quarter sales and user growth figures lower than badysts' forecasts, leaving investors in shock </p> <p> in its history as a public company, wiping out more than $ 120 billion in value from market.It marks the largest loss of value ever recorded in a single day for a company listed in the United States.The stock was trading at $ 179.92 at 9:41 am in New York </p> <p> The company ie told Wall Street that the numbers would not improve this year. Chief Financial Officer David Wehner said that revenue growth rates would decline in the third and fourth quarters. Analysts who followed Facebook were blind and frequently asked at a teleconference with executives for more information on how the company's financial future had changed so dramatically. "I think a lot of investors are struggling to reconcile this deceleration." , an badyst at Jefferies LLC, told Facebook's executives, asking for a little more clarity on the reasoning. "It seems that the scale is beyond anything we've seen, especially across a number of technologies (companies) that we cover." </p> <p> Before the results, Facebook had 44 purchase notice, two sales and two taken. Some badysts have tempered their prospects Thursday. </p> <p> For Facebook, financial stumbling blocks are rare. The last time the company missed its estimates, the first quarter of 2015 was exceeded. The results followed a period when data confidentiality issues were severely reviewed, managing director Mark Zuckerberg before the US Congress for hours. [19659003Letrimestreaégalementétémarquéparlamiseenœuvreparl&#39;EuropedenouvellesloisstrictessurlesdonnéescequiselonFacebookaréduitlenombredevisiteursquotidiensdanscetterégionLasociétéaétébombardéeparlacritiquepubliquesursespolitiquesdecontenuenparticulierdansdespayscommeleMyanmaretleSriLankaoùladésinformationaconduitàlaviolenceEtilacontinuéàsubirlesretombéesdesenquêtessurlamanipulationrussedelaplate-formelorsdel&#39;électionprésidentielleaméricainede2016[19659003] These problems hit the middle of & # 39; a hard truth for & # 39; Company: Facebook, the social network with 2.23 billion & # 39; users active monthly, can not grow forever. "The core Facebook platform is in decline," said Brian Wieser, badyst at Pivotal Research Group. </p> <p> Facebook reported 1.47 billion daily active users in June, compared with the average of 1.48 billion badysts established by <i> Bloomberg </i>. The company's user base has reached its largest market, the United States and Canada, with 185 million daily users, while it has decreased by 1% in Europe to reach 279 million daily users. Overall, average daily users increased by 11% over the same period a year earlier. </p> <p> Revenues increased 42% to $ 13.2 billion in the quarter. Analysts forecast $ 13.3 billion. The social network still holds one of the most valuable data sets in the world on what interests people and makes this audience easily accessible to advertisers. The company remains a dominant position in mobile advertising alongside Google Alphabet Inc. </p> <p> "As we have written extensively, the advertising industry – and digital advertising no less – has limitations to growth, which seems to us the main factor limiting Facebook's revenue opportunity, "said Wieser in a note after the profits. "Deceleration such as guided leadership suggests that while the company continues to grow rapidly, 30% + growth days are counted." </p> <p> Wehner gave three different reasons why business revenue growth would decline: more investment in new types of content sharing, such as the disappearance of videos, and increased control over privacy by users – a direct response to critics of the company </p> <p> After the entry into force of the general regulation on data protection began asking people to check their privacy and security settings. to ensure that they wanted to share certain types of data. Facebook offers a version of these protections to the rest of the world. If users choose to share less data with Facebook, this could hurt the company's advertising targeting capabilities, making them less attractive to marketers . </p> <p> In Europe, politics has played a role in North America, which is the most lucrative advertising market of the company. Facebook has disrupted some business by putting new rules in place to get all political advertisers to check their identities. The company may have stopped more advertising purchases than expected by applying a broad definition of what is considered "political." </p> <p> After the earnings report, leaders explained the potential of Facebook's other properties. fuel growth. The company owns three other properties with more than one billion users: WhatsApp, Messenger and Instagram. Together, the entire Facebook product suite has 2.5 billion unique monthly users, the company unveiled for the first time. </p> <p> Among the most recent companies, the Instagram business model is the most mature and has likely contributed significantly to the quarter's business figure. said. Zuckerberg called it "amazing acquisition," saying that Instagram grew up twice as fast as part of Facebook, without explaining its methodology. The company does not burst Instagram revenues. </p> <p> Facebook said it would increase spending to invest in video content, and on new bets like artificial intelligence and virtual reality. The company is also rapidly expanding its real estate across the globe to host a wave of hiring, which includes thousands of new workers to help fight the manipulation of foreign elections on the site. The company had 30,275 employees as of June 30, an increase of 47% over the previous year. </p> <p> Prior to the announcement of the results, Facebook's shares had closed at $ 217.50 in New York and had gained 23%. </p> <p> The company's revenue forecast was "unprecedented," said Loup Ventures badyst Gene Munster in a note to investors. But Facebook, which has recorded average sales growth of 50% over the last 10 quarters, may well lower the bar in order to regain confidence in the coming quarters. </p> <p> "Society has a history of growth and turn around and exceed these expectations the following quarter," writes Munster. </p> <div clbad= First published: Thu, 26 Jul 2018. 07 35 PM IST [19659022] [ad_2]
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