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Sunday 16 December 2018

Facebook shares plunge dramatically after user growth slows

The social media company’s financial results fell short of Wall Street expectations.

Facebook shares have fallen in value (Dominic Lipinski/AP)
Facebook shares have fallen in value (Dominic Lipinski/AP)

By Associated Press Reporter

Facebook may be heading for the worst day on the markets in its history after the company revealed that user growth has slowed.

The company’s stock plunged 19% in early US trading on Thursday, eradicating well in excess of $100 billion in market value.

The social media company’s financial results, released late on Wednesday, fell short of Wall Street expectations as the company continues to grapple with privacy issues.

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Facebook has been hit a slowdown in user growth (Dominic Lipinski/AP)

It also warned that revenue would decelerate as it promotes new products

Facebook had 2.23 billion monthly users as of June 30, up 11% from a year earlier, but well short of what industry analysts had been expecting.

The results are from the first full quarter following the revelation of the Cambridge Analytica privacy scandal. The company is also contending with European privacy rules that went into effect in May.

Press Association

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