Home » Money

Revenue Shortfall Wipes Out Facebook’s Year-to-Date Gain

26 July, 2018, 13:27 | Author: Shawna Walton
  • Facebook CRISIS Mark Zuckerberg

Facebook's daily and monthly user counts were up 11 percent year-over-year, confirming that the momentum of its business is still overpowering its PR problems that took place prior to the company publishing these reports.

His fortune tumbled in late trading Wednesday, as shares of the social media giant slid 20% in post-market trading in NY on disappointing results.

In fact, it would have wiped out 87 percent of the billionaires in Bloomberg's index.

Second-quarter revenue and average daily visitors fell short of analysts' estimates, according to a statement from the Menlo Park, California-based company.

Total revenue rose 41.9 per cent to US$13.23 billion.

Facebook has been struggling for years with criticism about its content policies, its failure to safeguard private data and its changing rules for advertisers.

But the company's ad growth engine contended with disruptions in its most lucrative markets. Facebook lost about $130 billion in market value in just two hours, its steepest stock decline ever, and the personal wealth of Facebook co-founder and chief executive Mark Zuckerberg also took a major hit, Mark Zuckerberg lost almost $17 billion in just two hours on Wednesday.

The results missed Wall Street expectations.

Facebook's disappointing second-quarter performance marks the first full quarter since one of its biggest scandals to date. "This is a clear inflection point for Zuckerberg & Co.as the company's advertising fortress and MAU metrics still look "well intact" despite the massive potential headwinds caused by Cambridge and the overall privacy worries (GDPR) in Europe although challenges remain". Instagram's business model is so far the most mature, and likely contributed meaningfully to the company's revenue in the quarter, analysts have said, though Facebook doesn't break out sales for the app.

Facebook 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.

After the General Data Protection Regulation went into effect in Europe, Facebook started asking people to check their privacy settings and make sure they wanted to share certain kinds of data.

The site also brought in 1.47 billion global daily active users (DAUs) during its second quarter, below the 1.49 billion that analysts were projecting, according to a StreetAccount and FactSet outlook.

"We also believe "considerable strength" from the Instagram side of the house has neutralized any soft spots on the core Facebook platform in our opinion".

Facebook (NASDAQ:FB) managed to reached 2.23 billion monthly users but these numbers show that growth topped just 1.54 percent, which is much slower than Q1's 3.14 percent around where its growth rate has hovered for many years. The company said headcount was 30,275 as of June 30 - an increase of 47 percent year over year.

Shares in Facebook, which have risen about 23 percent this year, fell 8.6 percent to $198.71 in trading after the bell as investors reacted to the results.

Recommended:

  • Toronto shooter named by Canadian officials

    Toronto shooter named by Canadian officials

    John Tulloch said he and his brother had just gotten out of their vehicle when he heard about 20 to 30 gunshots. A postmortem will be conducted on Tuesday, Special Investigations Unit spokeswoman Monica Hudon said.
    Hazard 'reaches verbal agreement' with Real Madrid

    Hazard 'reaches verbal agreement' with Real Madrid

    Sarri and Zola face the immediate task of keeping Hazard at Stamford Bridge. "He's one of the top European players", said Sarri . Click through the gallery above to see five Chelsea stars who are now linked with moves away from Stamford Bridge.
    Iran opens missile production line, rejects Trump's threat

    Iran opens missile production line, rejects Trump's threat

    But he said the Iranian "people and the armed forces will stand up against our enemies and will not come up short". Germany is calling for restraint amid escalating rhetoric between the leaders of Iran and the United States.
  • Malcom: Barcelona to sign Bordeaux's Brazilian winger

    Malcom: Barcelona to sign Bordeaux's Brazilian winger

    Malcom's potential move to Roma has been thrown into doubt after Barcelona expressed an interest in signing the Brazilian. Malcom was reportedly ready to board a flight to Rome on Monday, before Barcelona hijacked his deal at the 11 hour.
    GET READY: Dundee to experience longest lunar eclipse of the century

    GET READY: Dundee to experience longest lunar eclipse of the century

    The Lunar Reconnaissance Orbiter , NASA's robotic spacecraft orbiting the moon, will experience it first-hand. This will persist until 2.43 am, after which the Moon will begin to move outside the Earth's shadow.
    U.S.  to receive American soldiers remains in coming weeks: Mike Pompeo

    U.S. to receive American soldiers remains in coming weeks: Mike Pompeo

    The women's arrival happened when South Korea was governed by a conservative government, which took a tough stance on the North's nuclear program.
  • Paul Scholes Gives Harsh Assessment Of Paul Pogba

    Paul Scholes Gives Harsh Assessment Of Paul Pogba

    Manchester United finished in second place in the Premier League table last season to finish above Spurs and Liverpool FC. If our players are interesting a lot of clubs it is because we are recruiting well and doing good work.
    I want trophies every season - Riyad Mahrez

    I want trophies every season - Riyad Mahrez

    The wait for the 2018-19 Premier League season is nearly over. "Just Dome not with us, but what they do, they did it last season". Villa now plays for New York City FC, who are under the umbrella of the City Football Group. "Everyone knows the way he plays".
    Ireland says no Brexit 'without backstop'

    Ireland says no Brexit 'without backstop'

    The Conservatives leader will speak to businesses in the region about the challenges posed by Brexit. Her solution to the border issue is future partnership between Britain and the EU.
  • Fiat Chrysler CEO Sergio Marchionne, dies aged 66

    Fiat Chrysler CEO Sergio Marchionne, dies aged 66

    Long-time Fiat Chrysler , Ferrari and Maserati CEO Sergio Marchionne has died aged 66 due to complications from shoulder surgery. It also claims that Marchionne is now being kept alive only by machines, and that doctors said there was no hope of recovery.
    Alaphilippe snatches stage 16 after Yates crash as Thomas retains yellow jersey

    Alaphilippe snatches stage 16 after Yates crash as Thomas retains yellow jersey

    Froome has said his training plan was designed for him to come good in the last week. "I've got young staff - our mechanic's 21". Thomas enters with a 1 minute, 39 second advantage over teammate Chris Froome , the four-time champion.
    Dortmund ease past Man City in Champions Cup opener

    Dortmund ease past Man City in Champions Cup opener

    Since Guardiola arrived at City as boss in the summer of 2016, Hart has had season-long loan spells with Torino and West Ham .


Popular

Hundreds join search for missing jogger Mollie Tibbetts in Iowa
Tibbetts had been planning to go with Jack to the wedding and she is close to the bride and groom, her mom said. Tibbetts is described as 5-foot-3-inches tall, weighing about 120 lbs., with long brown hair and brown eyes.

USA ‘ready’ to make new Iran deal amid heated exchange
A top Iranian military official said US threats against Iran will draw a, quote, "strong, unimaginable and regrettable response". In retaliation, Iranian Foreign Minister Mohammad Javad Zarif on Monday warned Trump to "be cautious".

Mbappe, Modric on 10-man list for FIFA best player award
Argentine forward Messi topped the scoring charts with 34 goals in Barcelona's third La Liga title win in the last four seasons. He claimed the FIFA Best Men's Player Award in the past two years, with the accolade being handed out since 2016.

Iran general warns Donald Trump: 'US will regret threatening Tehran'
So the only way he figures that he's going to get reelected - as sure as you're sitting there - is to start a war with Iran. Javad Zarif tweeted: "COLOR US UNIMPRESSED: The world heard even harsher bluster a few months ago".

Tour de France: Magnus Cort Nielsen secures first Tour win
- It's fantastic ! It was one of my biggest dreams when I've started riding a bike. Try to catch tomorrow's team time trial in Cholet - it is 35km of intense cycling.

Mesut Ozil named in Arsenal squad for Singapore tour
Born and raised in Gelsenkirchen, Ozil has scored 23 goals and made 40 assists in 92 appearances with Die Mannschaft. The DFB and Germany got many choices wrong, but most of all, they left Ozil with no choice other than this one.

Nawaz Sharif "Protecting India's Interests", Alleges Imran Khan
Video images from the scene showed three bleeding and unconscious passengers inside a badly damaged black sports utility vehicle. Hanif Abbasi, seen as a strong candidate for PML-N in Wednesday's poll, was sentenced in a rare late-night session Saturday.

German police: 10 injured in bus knife attack, suspect arrested
Firefighters attend passengers of a bus in Luebeck, northern Germany , Friday, July 20, 2018 after a man attacked people inside. No motive has been ascertained for the attack. "There were no dead", the police and prosecutor's office said in a statement .

Jodie Whittaker thinks it's 'liberating' to be first female 'Doctor Who' lead
The new Doctor points out how everything is new to her: new faces (including her own), new places, new times to travel through. Press PLAY above for some quality Doctor Who talk, and then hit the comments: What do you want to see in Season 11? .

Oil prices fall amid record US output, stockpile build
He also said concerns that Saudi Arabia and its partners are moving to substantially oversupply the market are "without basis". U.S. crude strengthened late in the session as the U.S. dollar index slipped to a four-day low, on reports that U.S.