Wednesday, 15 August, 2018

Facebook loses $130 bn in just two hour, Zuckerberg $17 bn

Facebook shares sink 8% as Q2 revenue and user growth misses analyst estimates Facebook stock dives nearly 20% on warning of slow revenue growth
Lindsey Cook | 28 July, 2018, 19:49

He was listed Thursday as $81.9 billion poorer than Jeff Bezos, who still hold the top spot on that list.

And slower growth on the primary Facebook platform doesn't overshadow growth on its other holdings, they say.

The change was due to the European Union implementing the General Data Protection Regulations, which imposed new rules on how internet companies store customer data. Those problems hadn't mattered to the success of the business - until now.

While gargantuan in sheer number, the drop in Facebook's market value doesn't spell the end for the company.

On start of play Thursday 26 July, when U.S. markets reopened, Facebook saw more than $109 billion (£83 billion) wiped off of its market valuation.

After all, from what little we know, the kids these days seem to be into Snapchat and Fortnite rather than posting semi-snide comments about the bridesmaid dress your friend has just got for Aunty Edwina's third marriage.

For Facebook, financial stumbles are rare. The data released by Facebook in the Q2 2018 earnings call indicates that even though revenue increased 42 percent to $13.2 billion, it was still lesser than the Wall Street estimates of $13.3 billion.

Facebook has faced dozens of lawsuits over its handling of user data in a scandal also concerning the United Kingdom firm Cambridge Analytica.

Mark Zuckerberg is also counting the cost of user disenchantment with Facebook. The company was bombarded by public criticism over its content policies, especially in countries such as Myanmar and Sri Lanka where misinformation has led to violence. And it continued to suffer fallout from investigations into Russian manipulation of the platform during the 2016 USA presidential election.

More news: Families search for missing in wake of Greek wildfires
More news: Egyptian zoo 'paints donkey to pass it off as a zebra'
More news: Secret recording of Trump-Cohen on payments to adult-film actress emerges

The social media platform's second quarter earnings report showed it had lost approximately a million monthly users and 3 million daily users in Europe, with no user growth in the US. Overall, Facebook grew its global users by 11 percent from the same time past year.

Total net sales for the second quarter rose 39 percent to $52.9 billion, missing the average analyst estimate of $53.4 billion. Analysts projected $13.3 billion. The stock tanked that day after the company failed to convince investors that it could sell mobile advertising.

"Our total revenue growth rate decelerated approximately 7 percentage points in Q2 compared to Q1", he said.

It was Facebook's lowest user growth rate ever.

Much ground has been lost in the short span of 24 hours - a fall from which Facebook will have to work hard to recover.

Facebook has been playing favorites with certain users and companies who lean left politically, silencing pro-Trump people and companies including the influential Diamond and Silk.

However, media buyers believe the company will bounce back.

Brian Sheehan, a Syracuse University professor of communication and advertising, said the weak forecast "made investors nervous about more basic long-term issues" with the huge social network, notably its diminished appeal to younger users. The company may have halted more ad purchases than expected as it applied a broad definition of what's considered "political".

Recommended

The Galaxy Note 9 can be booked until August 23 in Europe The Galaxy Note 9 can be booked until August 23 in Europe Fortnite doesn't need help in promotion, and the launch on Android is already an anticipated event. One thing that has helped make it so popular is its support for nearly every platform.

House Conservatives Introduce Articles of Impeachment Against Deputy AG Rod Rosenstein House Conservatives Introduce Articles of Impeachment Against Deputy AG Rod Rosenstein House Majority Leader Kevin McCarthy repeatedly refused to support or oppose impeachment when asked by reporters at the Capitol. The Justice Department has provided more than 800,000 documents to lawmakers, The Associated Press reported.

Nick Jonas Reportedly Proposed To Priyanka Chopra At Her 36th Birthday Nick Jonas Reportedly Proposed To Priyanka Chopra At Her 36th Birthday If rumours are to be believed, Assam Tourism Brand Ambassador Priyanka Chopra got engaged to Nick Jonas on her birthday, July 18. Priyanka Chopra and Nick Jonas seen on a night out at 34 restaurant in Mayfair on July 16, 2018 in London , England.

'It cost me everything' - Roseanne Barr 'wish she worded' controversial tweet better 'It cost me everything' - Roseanne Barr 'wish she worded' controversial tweet better She said: "I'm not a racist and the people who voted for Trump, they're not racist either, and Trump isn't a racist, sorry". Barr also addressed Jarrett directly and apologized for the tweets, advocating for a broader dialogue on race relations.

Celtics Offered A Whole Bunch Of Draft Picks For Kawhi Leonard Celtics Offered A Whole Bunch Of Draft Picks For Kawhi Leonard In March, ESPN reported that Leonard grossed less than $500,000 a year in his existing Jordan Brand endorsement deal. For a short time after the trade, word was that Leonard was not interested in playing for the Raptors in 2018-19.

USA senators to grill Pompeo over Trump-Putin summit, N Korea USA  senators to grill Pompeo over Trump-Putin summit, N Korea Pompeo assured lawmakers, based on his own personal briefings of the president, that Mr. Trump accepts US intelligence findings that Russian Federation did meddle.

White House bars CNN correspondent from open press event White House bars CNN correspondent from open press event But footage of the incident shows none of the assembled press heeded aides' calls to leave at first. The president has, on numerous occasions, responded to these shouted inquiries.

Maddow doesn't relent on White House transcript - 7/25/2018 11:05:47 PM Maddow doesn't relent on White House transcript - 7/25/2018 11:05:47 PM White House national security adviser John Bolton then issued a statement postponing the follow-up Putin summit until next year. White House press secretary Sarah Sanders tweeted that Trump asked Bolton to arrange for the meeting to take place in the fall.

Hamilton rewards Mercedes with epic win in Germany Hamilton rewards Mercedes with epic win in Germany Mercedes team chief Toto Wolff expressed sympathy for Vettel , noting how quickly fortunes can change in Formula One. Sebastian Vettel looks dismayed after sliding out.

Facebook (FB): What the Hell Just Happened to the Stock? Facebook (FB): What the Hell Just Happened to the Stock? Analyst Ross Sandler with Barclays asked if revenue growth was set to drop to "around 20% by the fourth quarter of this year". Facebook attracted about 20% of digital advertising spending in the U.S. a year ago , according to research firm eMarketer .

BRICS Emerging Economies Meet In Wake Of US Trade War BRICS Emerging Economies Meet In Wake Of US Trade War In the past week, various meetings held by the BRICS forums have been taking place in some parts of the country: youth, unions and civil society.

Ministers are still being persuaded Chequers deal is good, says Brexit secretary Ministers are still being persuaded Chequers deal is good, says Brexit secretary Back in March, UK Prime Minister Theresa May revealed that the UK would be willing to remain part of the EMA after Brexit .

Barcelona snatch Brazilian Malcom from under Roma's nose Barcelona snatch Brazilian Malcom from under Roma's nose Barcelona have already announced the signing of Malcom even though the player is only going to have his medical today. Malcom , following deals for Arthur Melo and Clement Lenglet, becomes Barca's third signing of the summer.

North Korea's provocation level has dimmed, US Commander says North Korea's provocation level has dimmed, US Commander says North Korea has begun dismantling a key facility used for missile testing, an analysis of new satellite imagery reveals. FILE - Shown in April, 2012 is North Korea's long-range rocket launch site "Sohae Satellite Launching Station".

England men beat Samoa in World Cup Sevens opener England men beat Samoa in World Cup Sevens opener The Black Ferns were made to fight all the way in beating the US in the semi-finals and the final proved a stroll by comparison. While being a Fiji supporter in recent years has certainly not been tough, they have had their share of disappointment in 2018.