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Crashes of 23 percent European Data Protection Rules Slow Facebook – Share Loses Enormously
| Reading time: 2 minutes
Facebook continues to make sales. but the stock has dropped
Source: REUTERS
Following the data scandal surrounding Cambridge Analytica and the new data protection rules in Europe, the online network is suddenly vulnerable. Even if Facebook continues to collect billions of dollars, investors drop the title.
D The new European regulation on data protection significantly slowed Facebook in the last quarter. In Europe, the number of daily and monthly users has decreased. After Facebook missed sales analysts' expectations and management's comments gave investors no hope, the stock price temporarily collapsed by more than 23%.
Facebook pointed out that at least the European regulation on data protection does not affect sales have. At the same time, the number of active users in Europe rose from 377 to 376 million, at least once a month. There was even a drop from 282 to 279 million among members returning daily. Facebook managers have not planned how these numbers would grow. The boss of the company, Mark Zuckerberg, also said that it was encouraging that the vast majority of European users agreed to continue analyzing the data for personalized advertising. 2 to 2.244 billion. Growth has slowed. In this situation, the group introduced a new type of calculation. On at least one Facebook group app – this includes, among others, the Instagram photo platform and the WhatsApp chat service – has attacked about 2.5 billion users, according to the report. could also have slowed growth, remained uncertain. In the most important domestic market economically, there has been no increase in the number of members for several quarters. Facebook made more than $ 25 per user in North America in the last quarter. In Europe, it was only 8.6 dollars
Nevertheless, a slot machine
Despite the missed expectations, Facebook is still a slot machine at the same time. Quarterly revenues increased 42 percent year-over-year to $ 13.23 billion ($ 11.31 billion). Earnings rose 31% to $ 5.1 billion. The stock has so far been in the record hunt and had scored the next high only up to the quarterly figures presentation.
Facebook itself had previously warned that the number of monthly and daily active users in Europe should stagnate or decrease slightly in the second quarter. It was triggered by the EU General Data Protection Regulation (DSGVO), to be followed from 25 May.
This was also the first full quarter since the start of the Cambridge Analytica data scandal in mid-March. The online network has been the subject of massive criticism because once the data of millions of users have been transmitted to the data analysis company. At the same time, Facebook had previously stated that the controversy had not affected its use.
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