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Facebook shares sink on flawless storm of bad news

Facebook shares sink on flawless storm of bad news

His fortune tumbled by US$16.8 billion in late trading Wednesday, as shares of the social media giant slid 20 per cent at 5:37 p.m.in NY on disappointing results. It was among the biggest one-day losses of market value in US stock market history.

Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma, in recent years has trimmed, but not eliminated, the amount of Facebook shares in his clients' accounts, and he said he sees the company as a three-year investment.

On the Q2 earnings call, CFO David Wehner said the company expects revenue growth to slow to single digits over the next two quarters from 42% year-over-year in the second quarter. Leading up to the new stricter privacy rules, Facebook notified users across Europe of pending changes to its privacy policies.

The commentary in the wake of Facebook's second quarter results has generally been pretty brutal, with most of the takes focused on reality setting in.

The Facbook CEO also allowed the Russian meddling scandal to develop in 2016 in which Russian operatives bought Facebook ads to influence US voters. The UK-based company had gained access to the personal data of tens of millions of Facebook users through a third-party application, and some of that data was reportedly used to target advertising during the 2016 Brexit referendum and the U.S. presidential election. And the increased spending aims, among other things, to prevent a replay of the fake news and propaganda that Russian agents unleashed on an unguarded Facebook in an attempt to sway the 2016 presidential election.

Net income was $5.11 billion, or $1.74 a share, beating analysts' estimate of $1.71 a share.

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7 26 18 biggest market cap drops COTD
Business Insider Joe Ciolli Andy Kiersz data from Bloomberg

Still, the loss of users should not have shocked investors because Facebook has said for the past two quarters that it was starting to hit the zenith of user growth in its most mature markets like North America.

The loss came a day after Facebook revealed that its user base and revenue grew more slowly than expected in the second quarter as it grappled with privacy issues.

"Nobody knows where the top is, where that growth slows down", said Phil Bak, CEO of Exponential ETFs and a former managing director of the New York Stock Exchange who said he's been warning investors of a potential sell-off in large tech stocks. Shares were down as much as 20 percent.

"Facebook is actively choosing to make less money, deprioritizing near-term monetization to drive engagement to even higher levels to capture even more of their 2.5 billion monthly users' time and attention", he wrote. Facebook's results prompted selling in other Nasdaq listings, including media and advertising rivals Amazon.com Inc, Netflix Inc and Alphabet Inc.

"T$3 he fundamental damage to the Facebook platform has been "very contained" in our opinion and is generally better than feared from the white-knuckle period a few months ago", he added.

Media push Facebook to censor Fox News!

Tesla sells 200,000th auto , starting phaseout of federal tax credits
CEO Elon Musk, for one, noted on Twitter that the Model 3, while newer than the Model S, is not a superior vehicle. While tax credits have helped boost electric-vehicle demand in the US , they remain only 1.1percent of the market.

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