Over $109bn wiped off Facebook's market cap after growth shock

A man uses a smartphone in front of an electronic board showing Hong Kong share index outside a bank in Hong Kong Friday

Although it did its best to downplay the stormy financial forecast, Facebook's investors don't seem to be distracted. The platform has been accused of helping violence spread in Myanmar, India and Sri Lanka. But the revenue of $13.2 billion missed Wall Street estimates of $13.4 billion. A #DeleteFacebook campaign didn't have any "material impact" on the bottom line, COO Sheryl Sandberg said earlier this year. But that was perhaps expected, in the aftermath of the data privacy scandal and the constant debate about the company's moderation policies for content posted on the social network.

U.S. technology companies are set for a bumpy ride on Thursday's stock market as contagion spreads through the sector after Facebook shares plunged 24% on Wednesday.

FB stock was down about 7.8% after the bell on Wednesday following the news, while shares were up roughly 1.3% during regular trading hours.

A woman walks past an electronic board showing Hong Kong share index outside a bank in Hong Kong Friday
A woman walks past an electronic board showing Hong Kong share index outside a bank in Hong Kong Friday

Shares fell as much as 19.6 percent to $174.78, a decline that if sustained would wipe about $124 billion off the company's value - or almost four times the entire market capitalization of Twitter Inc.

RBC Capital Markets analyst Mark Mahaney said the drop creates a rare buying opportunity for Facebook shares.

The privacy issue is a concern for the whole tech sector, as it could make it harder for these companies to sell user data or use it to make their products more effective.

Republican lawmakers launch move to impeach Justice Department's Rosenstein
GOP lawmakers have threatened impeachment against the deputy attorney general on numerous occasions over the past few months. Rosenstein, along with FBI Director Christopher Wray , faced dozens of angry Republicans at a House hearing last month.

During the call, Facebook Chief Executive Mark Zuckerberg tried to recast the disappointing earnings.

Facebook didn't respond to a request for comment.

"GDPR was an important moment for our industry", Zuckerberg said on Wednesday. "Looking ahead, we will continue to invest heavily in security and privacy. This is our responsibility to keep people safe". I saw them sprawled out across airports recently when I traveled, and it was definitely weird to see them.in-person, letting me know they're protecting my data more, on my phone. all while I know they don't.

Mars Express Just Discovered a Subsurface Liquid Water Lake on Mars
Researchers are still waiting to see if any more bodies of water are found on the Red planet or if this was a one-off discovery. Being able to access water sources could help humans survive on a future crewed mission to Earth's neighbouring planet.

"The Teflon has been scratched away", said Bob O'Donnell, head of Technalysis Research. The company is also rapidly expanding its real estate around the world to accommodate a hiring spree, which includes thousands of new workers to help combat foreign election manipulation on the site.

At least 16 brokerages cut their price targets on Facebook after managers said the cost of improving privacy safeguards, as well as slowing usage in the biggest advertising markets, would hit the company's profit margins for more than two years.

Or the situation could showcase the potential for GDPR to mess things up, as it would appear that European Union citizens are becoming more concerned about their data privacy. How many more people are realistically going to join? "This is not okay'".

Trump’s financial aid offer to farmers criticized as tax-funded ‘welfare’
The U.S.is also in the middle of a trade dispute with China and is threatening to impose new tariffs on the European auto sector. Cherry producers also felt the pinch during their short cherry season, as they face an additional 25 per cent tariff in China.

Related news:

Hot News

isis-killer-beheading-video-story-top Unai Emery impressed by Smith Rowe's performances for Arsenal
Jul 28, 2018 - 19:26
Arsenal took on Atletico Madrid in Singapore in the club's first match of the pre-season tour. I can just say I'm enjoying myself more here than I was in Manchester ".

isis-killer-beheading-video-story-top Weather warning issued for thunderstorms
Jul 27, 2018 - 22:30
Now employers have an obligation to provide a "reasonable" temperature in the workplace, but there is no maximum limit. Forecasters were expecting the prolonged heatwave to continue with temperatures set to peak on Thursday and Friday.

isis-killer-beheading-video-story-top Day after attack, Israel announces 400 housing units in West Bank settlement
Jul 27, 2018 - 21:58
Israel rejects the widely held view that settlement expansion is one of the greatest obstacles to peace with the Palestinians. Lone Palestinian attackers have carried out multiple deadly stabbings and car-rammings against Israelis in recent years.

isis-killer-beheading-video-story-top Woman in loveless marriage with 'patronising' husband denied divorce
Jul 27, 2018 - 21:56
Given that there are 106,000 divorces each year in England and Wales it might seem surprising that she could not get a divorce. Freedom to marry and divorce are both guaranteed by the law, but partners must uphold the "dignity of marriage", Li said.

isis-killer-beheading-video-story-top Toronto shooter and family are from Jhelum in Pakistan
Jul 27, 2018 - 21:46
Eighteen-year-old Reese Fallon had just graduated high school and was looking forward to studying nursing. The shooter had a lifelong mental illness, his family said, and city leaders want to ban handguns .

isis-killer-beheading-video-story-top Saudi Red Sea oil shipments halted after Houthi attack
Jul 27, 2018 - 21:43
Nearly 10 years ago, the oil market was shocked by the news that a Saudi oil tanker, Sirius Star, was hijacked by Somali pirates. Anything north of 4.0% could be bullish for prices because strong economic growth will mean greater demand for crude oil.

isis-killer-beheading-video-story-top Jose Mourinho admits right-back selection dilemma
Jul 27, 2018 - 21:32
Manchester United manager, Jose Mourinho , wants to sign Croatia winger, Ivan Perisic, before he lets Anthony Martial leave. United's all-time leading goalscorer, who is now on the books of MLS side D.C.

isis-killer-beheading-video-story-top House GOP lawmakers move to impeach Deputy AG Rosenstein
Jul 26, 2018 - 15:30
It would require a vote in favor from a majority of the House and two-thirds of the Senate. He clashed with House lawmakers in an open hearing last month about the issues.

isis-killer-beheading-video-story-top Facebook in freefall as weak outlook stuns market
Jul 26, 2018 - 13:27
Indeed, Wehner said Facebook's revenue growth rate, year over year, will drop by "high single digits" in this quarter and in Q4. Facebook forecast similar increases for the second half of the year, also citing spending on video content and marketing.

isis-killer-beheading-video-story-top China’s Xi warns of ‘unilateralism’ in US trade dispute
Jul 26, 2018 - 10:42
India's Prime Minister Narendra Modi arrived on Monday on the way to a summit in South Africa and agreed $200 million in loans. Trade wars should be rejected because there will be "no winner" from them, Chinese President Xi Jinping said.

isis-killer-beheading-video-story-top Fiat Boss Sergio Marchionne dies aged 66
Jul 25, 2018 - 19:44
It also claims that Marchionne is now being kept alive only by machines, and that doctors said there was no hope of recovery. Cgil's Fiom metalworkers union clashed with Marchionne over changes he brought to Italian plants to increase productivity.

isis-killer-beheading-video-story-top Israel shoots down Assad warplane as Syria tensions rise
Jul 25, 2018 - 19:17
The IDF, in a statement Tuesday, said that it noticed increased activity in southwestern Syria near the Israel-Syria border. Iran is Israel's arch-enemy and Netanyahu has pledged to prevent it from entrenching itself militarily in Syria.

isis-killer-beheading-video-story-top Representatives Meadows, Pelosi Respond to Release of Carter Page FISA Documents
Jul 25, 2018 - 19:16
The documents were released after several news organizations filed Freedom of Information Act lawsuits to obtain them. The 400 page warrant is heavily redacted and marks the first public disclosure of a highly sensitive FISA request .

isis-killer-beheading-video-story-top UK Premier May downgrades Brexit department
Jul 25, 2018 - 18:42
He added that the lack of a deal, while damaging for Britain, would provoke a backlash among British voters against the EU. Raab said: "Well, I think that's a rather irresponsible thing to be coming from the other side".

isis-killer-beheading-video-story-top Manchester City boss Pep Guardiola says more records 'impossible'
Jul 25, 2018 - 17:08
We'll keep you up to date with the very latest transfer news concerning your club in our daily gossip and rumours column. Sane added: "If you have seen how Napoli played last season, it was really, really attractive and really good".