Facebook has had a tough few days, seeing a massive decline in its stock price which fell by as much as 23 percent in after-market trading on Wednesday.
Despite the rocky quarter, Facebook shares had hit an all-time high before Wednesday's earnings report and its quarterly revenue was still up 42 percent from this time a year ago.
Well even with all of its control, power, and data it has on everyone the social networking giant saw its shares dip 19% in a single day which saw $120 billion eradicated from its market value, with Facebook now holding the record for the largest one-day drop in the history of the USA stock market. "In the US and Canada, Facebook's daily active users remained flat sequentially at 185 million, while the number actually fell in Europe, falling to 279 million, down from 282 million", writes Fox News.
Facebook shares have already been through a rollercoaster of ups and downs this year, with the biggest slump coming in April after it emerged data from tens of millions of users had been acquired by Cambridge Analytica.
Facebook faced a day of reckoning Thursday as its shares plunged in the biggest one-day drop in stock-market history. The company said it now expects third-quarter sales of between $54 billion (roughly Rs. 3.7 lakh crores) and $57.5 billion, up from $43.7 billion a year earlier.
But Facebook's recent woes appear to be more than just a temporary bump in the road.
"We suspect Facebook is sticking with its historical playbook and will, in fact, beat these lower numbers".
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"Although the Facebook platform is beginning to see slowing growth, the company's other products are still seeing dramatic growth", says Michael Pachter of Wedbush.
After having weathered all of the above, declining financial growth and static user growth has finally resulted in a major investor panic.
While privacy was an issue in Europe, politics played a role in North America, which is the company's most lucrative advertising market. "I find that deeply offensive, but at the end of the day, I don't believe that our platform should take that down because I think there are things that different people get wrong".
"Looking beyond 2018, we anticipate that total expense growth will exceed revenue growth in 2019", he said.
The company reported $5.1 billion in profit, or $1.74 per share, compared with the average estimates of $5.1 billion and $1.72 per share among research gathered by Thomson Reuters.
Even after Facebook CEO Mark Zuckerberg was hauled in front of lawmakers on both sides of the Atlantic and federal agencies began to probe Facebook, prompting calls for increased regulation, investors and advertisers were undeterred, propelling the stock to new highs.
Several factors this earnings call contributed to Facebook's disastrous loss in market value.