Thursday, July 26, 2018
Facebook Suffers 24% Drop In Stock Price
Facebook lost $150 billion in market value yesterday. The shares fell 24% after Facebook's revenue growth did not meet investor expectations. It reported $13.23 billion in revenue for the quarter and profit of $5.1 billion but its stock price had been bolstered by Google's report of accelerating revenue growth. They are in the same market for advertising revenues on their social media platforms. However, Facebook lost 3 million users in Europe and user growth in the US and Canada was flat for the quarter. Facebook expects user growth on several of its other social media platforms but they do not generate the advertising revenues that are produced by Facebook which has suffered from reported abuses of Facebook by Russia and others who have used the platform to spread fake news. In addition to declining revenue growth, Facebook has been forced to increase its workforce to reduce the abuses of its platform that have been widely reported.