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play. Jul 26, 2018 – 23:30
Facebook shares fell 19.6% to US $ 174.78 early in the session, a decline that would have canceled about US $ 124 billion from the value of the company – almost four times total capitalization of Twitter Inc.
Facebook's second quarter results were the first sign that a new European law on the protection of privacy and a series of scandals involving Ca mbridge Analytica and other application developers are reaching the market.
Facebook also warned that the toll would not be offset by emerging-market revenue growth and the company's Instagram application, which was less affected by privacy concerns.
Describing ads as "bombs," Baird analysts said the problems were largely "self-inflicted" as Facebook sacrifices its monetization of core apps to boost usage.
Of 47 analysts covering Facebook, 43 rate the stock as "buy", two "hold" rates and two "sell" it. Their median target price is US $ 219.30.
MoffettNathanson analysts have called the company's forecast either "either the new economic reality of their business model, or a very public self-immolation act to repel regulatory pressures." The billion euros that Zuckerberg could lose is equivalent to the wealth of the 81st richest person in the world, Japanese businessman Takemitsu Takemaki, according to the real-time data of Forbes
. "Unlike Netflix, whose temporary quarterly shortfall we have seen, we are seeing an evolution in history, even if we were expecting part of it," said Daniel Salmon, an analyst at BMO Capital Markets. .
However, the focus put by Facebook on more engaging content and the promotion of stories on its news feed, which would support long-term revenue, was a good example. "The bears are earning this quarter … but not the war," said Jefferies analyst Brent Thill
REUTERS
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