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This Thursday, the eyes of Facebook shareholders are on Wall Street. Wednesday, at the close of NASDAQ, the technology market, each company title Mark Zuckerberg was worth $ 210. But after closing, the company announced second-quarter results: revenues of $ 13.2 billion, up 42% over the same period last year, and an 11% increase from number of users.
After the presentation of the results, the share price began to fall. It dropped 7% and lost 23% during the regular conference call with analysts and the press.
At the opening of the session on Thursday at 9.30 (15.30 Lisbon), the damage was confirmed. Shares began the morning at around $ 175, compared with 210 traded less than 24 hours earlier.
In percentage, the fall is comparable only to March of this year after the publication of the Cambridge Analytica judgment
The fall represents a loss of more than $ 109 billion worth of Facebook on the stock market. In just a few minutes, Zuckerberg, who owns about 17 percent of the company, lost $ 14.5 billion in her fortune (as she has seen her other business grow at equal value or more).
which led to this scenario, which overnight, made a dent in Mark Zuckerberg's fortune? In Five Points We Explain What's Happening
What Part of Facebook's Results Scared Investors? The quarter's business figure rises to $ 13.2 billion (about 11.3 billion euros), and it is true that this represents a growth of 42%. But it is no less true that sales growth is the least important in almost two years.
On the other hand, these figures were slightly lower than projected revenue and growth (which was $ 13.3 billion). The problem is compounded with a post from Facebook's founder explaining the results of the homonymous social network: "We are investing so much in security that it will have a significant impact on our profits."
We just shared our community update and quarterly results. The number of active Facebook users may have increased, but in the United States and Europe, growth was residual, as reported by Market Watch. That is, in the largest economies in advertising for the social network may have reached the full market share possible. Without user growth prospects, value ceases to grow. Take the case of Portugal where, according to Facebook, the social network already has about 6 million Portuguese (it is a number very close to the total number of Internet users in the country).
] With younger users switching to other less profitable platforms of the company, the market value of the action decreases.
" This quarter, our system has identified and removed thousands of fake accounts, pages and groups before the Mexican elections." Zuckerberg says in the publication that he shared. After the publication of the Cambridge Analytica case in March – involving 87 million profiles illegally copied by the data analysis company to influence the outcome of the elections – Facebook launched a massive campaign to change the way it protects data and user information "We now have 20,000 people working on content security and review," says Zuckerberg.
Since there are no free meals, this investment in safety costs the company money, creates new burdens and reduces the recipes.
After the entry into force of the new General Data Protection Regulation in all EU countries, requiring companies that have access to a large amount of personal data to take stricter measures to protect them, Facebook has new burdens. As explained to Zuckerberg in the United States Congress, following the Cambridge Analytica case, the solution to prevent such scenarios from happening again
Not only did Facebook provide new tools (such as making available a copy of all the data that is easy and efficient) for users in the European Union, as well as extend the measures for users in the rest of the world. The company received a symbolic fine of about 565,000 euros in July from the UK authorities for the Cambridge Analytica case (it was not filed).
because, at the time of the facts, the RGPD was not yet in force and that it is this new regulation which authorizes fines ranging from up to 4% of the total value of revenues) that the company is still under fire from critics. At least in the European Union, as attests yet another record sanction imposed on Google for abuse of dominance, the approach to technology may change, diminishing its value to investors (and it there are already complaints). [19659002
Even with results below investor expectations, the company's general manager stresses that the focus remains on growth. To follow the changing trend of social media, Zuckerberg gives one of the latest news from the company, IGTV, Television for Instagram, the most popular social sharing network among young people. For the executive, it is a "huge success" with "potential to make money," as revealed the conference.
In the afternoon on Thursday, the NASDAQ shares of the US giant continued to lose 19%. In March, the decline was similar, but the company regained its inventory levels before the controversial start of Cambridge Analytica early June
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