Mark Zuckerberg, added that the trajectory was not likely to improve anytime soon, especially as Facebook spends to improve the privacy and security of users.

His fortune tumbled by $16.8 billion in late trading Wednesday, as shares of the social media giant slid 20 percent at 5:37 p.m.in NY on disappointing results. Fourteen analysts surveyed by Zacks expected $13.43 billion.

Facebook Inc saw the first signs of user disenchantment in the midst of public scandals over privacy and content, with second-quarter revenue and average daily visitors missing analysts' projections. Analysts were generally expecting earnings-per-share of $1.72 on revenues of $13.3 billion.

Facebook has been struggling for years with criticism about its content policies, its failure to safeguard private data and its changing rules for advertisers.

The proximate cause was the company's disclosure its revenue rate growth will slow precipitously in the current quarter and the next one.


The magnitude of erosion of $120 billion can be understood if we compare it to other companies in the market: Facebook lost two Tesla in the after hour trade, i.e. within four hours. The company displayed mixed results in its Q2 2018 earnings and this can be contributed to the GDPR, Zuckerberg's testimony before Congress, as well as more scandals that might have contributed to Facebook's weak user growth for this quarter.

It's the first time Facebook missed an earnings report since 2015.

The company remains in a dominant position in mobile advertising alongside Alphabet Inc's Google. Wehner said the drop was due entirely to a data protection and privacy law that took effect in Europe in May known as the General Data Protection Regulation, or GDPR.

Facebook Chief Financial Officer David Wehner told investment analysts on a conference call that the company's operating margin, a key measure of profit, would trend toward the "mid-30s" over the next several years, down from 44 percent in the quarter that ended June 30.

The fleeing of one million users is but a drop in the ocean to Facebook, which now has over 2.2 billion active monthly over-sharers on its website.


Facebook warned that a slowdown in revenue growth will continue through the second half of 2018, with expenses soaring 50% to 60% year over year.

The company earned $5.1 billion, or $1.74 per share, up 31% and above analysts' estimates of $1.71. The company owns three other properties with more than 1 billion users: WhatsApp, Messenger and Instagram.

Shares in the technology company and publisher plunged by nearly 25 per cent in late trading after David Wehner, chief financial officer, said that Facebook's revenue growth would decelerate in the second half of the year and expenses would soar in 2019.

That places Zuckerberg, who had been the world's third-richest person, at No. 6, below billionaires including Berkshire Hathaway's Warren Buffett, French business magnate Bernard Arnault, and Zara founder Amancio Ortega.


Related news:

Share this:

Hot News

isis-killer-beheading-video-story-top Former Fiat Chrysler CEO Sergio Marchionne dies at 66
Jul 25, 2018 - 19:44
In a brief statement , Fiat chairman, John Elkann, said: " Sergio Marchionne , man and friend, is gone". It is now the world's seventh-largest carmaker and is debt-free.

isis-killer-beheading-video-story-top MIDDLE EAST ON EDGE: Jerusalem Shoots Down SYRIAN Warplane Over Israel
Jul 25, 2018 - 19:14
The regime of Syrian dictator Bashar Assad has long accused Israel of aiding "terrorist" elements inside the country. But Syria's state-run news agency denied this, and accused Israel of targeting a fighter jet over Syrian airspace.

isis-killer-beheading-video-story-top FBI Releases Carter Page FISA Warrant Applications
Jul 25, 2018 - 19:14
House Intelligence Committee Republicans confirmed in an April report it was Papadopoulos who set the FBI investigation in motion. Trump responded to the top secret documents by claiming his campaign had been "illegally spied upon".

isis-killer-beheading-video-story-top Ireland would "absolutely" back extending Brexit talks to avoid no deal
Jul 25, 2018 - 18:39
Britain would find that challenging but in the end we would find a way not just to survive but to thrive economically. The poll found that one in three voters are prepared to back a new anti-Brexit centrist party.

isis-killer-beheading-video-story-top Manchester City's Riyad Mahrez Rejected Other Offers to Join Club
Jul 25, 2018 - 17:04
The football the boys played past year was not easy. "They are all good guys - and that's why I was disappointed for them". The Manchester United club ambassador says that former black players are just not being given the chance in England .

isis-killer-beheading-video-story-top Insight: Jewish nation-state law: What is Jakarta’s response?
Jul 25, 2018 - 13:09
As per the law, land of Palestine is considered historic land of Jews who will only have the right to decide for the land. The bill is controversial with proponents praising it as a cornerstone of Israeli national identity and Zionist ideals.

isis-killer-beheading-video-story-top UK PM May says she will lead Brexit talks from now on
Jul 24, 2018 - 20:59
Dublin-based budget airline Ryanair said today "we believe that the risk of a hard Brexit is being underestimated". And it was now clear that the EU Withdrawal Act "will need major surgery".

isis-killer-beheading-video-story-top Toronto gunman named by Canadian officials
Jul 24, 2018 - 20:43
Toronto police spokeswoman Meaghan Gray said the victims of the mass shooting include eight women and girls, and seven men. The people killed in the shooting have been identified as a 10-year-old girl and an 18-year-old woman.

isis-killer-beheading-video-story-top Tour de France interrupted by protest
Jul 24, 2018 - 20:29
Race organizers have had trouble controlling crowds with fans getting out of hand on the most famous climbs of the Tour. The incident happened with 187km to go on the Tour's 16th stage between Carcassonne and Bagneres-de-Luchon.

isis-killer-beheading-video-story-top What Mesut Ozil's retirement says about Germany
Jul 24, 2018 - 19:56
Justice Minister Abdulhamit Gul on Monday congratulated Ozil, saying he had "scored the most lovely goal against the virus of fascism".

isis-killer-beheading-video-story-top Pakistan votes on July 25: All you need to know
Jul 24, 2018 - 19:46
Video images from the scene showed three bleeding and unconscious passengers inside a badly damaged black sports utility vehicle. The military has warned of threats before the polls, and will put more than 370,000 soldiers on the streets on election day .

isis-killer-beheading-video-story-top Tesla shares drop on report that it asked suppliers for refunds
Jul 24, 2018 - 18:58
Tesla had about $3.2 billion in cash as of the first quarter ended March 31, after spending about $1 billion in the quarter. In June the company said it was eliminating 3,600 jobs, or 9 percent of its staff, as part of a restructuring effort.

Sri Lanka vs South Africa
Jul 23, 2018 - 14:58
In the second innings, both the openers of Sri Lanka , Danushka Gunathilaka and Dimuth Karunaratne, got half-centuries. For South Africa , left-arm-spinner Maharaj took his match-haul to 11 wickets but his team were in dire straits.

isis-killer-beheading-video-story-top Tour de France: Geraint Thomas keeps the yellow jersey
Jul 23, 2018 - 13:17
Van Avermaet explained: "I was waiting for a reaction from Sky when I went to try and get in the breakaway, but nobody reacted". After three previous stages in the mountains, only the heartiest will survive at the front on this stage.

isis-killer-beheading-video-story-top Canada: At least one dead, 14 injured in Toronto shooting
Jul 23, 2018 - 09:46
I am thankful to all first responders who came as quickly as possible to help people in the wake of this horrific incident. ET, gunfire was reported in the Danforth and Logan area, which is a bustling area that includes bars, businesses and homes.