Fb shares slumped 24% in after-hours buying and selling, because the social media big revealed that its consumer base and second-quarter income grew slower than anticipated.
The shares, which have risen as a lot as 23% this yr, fell to $201.40 in buying and selling after the bell.
Greater than $150bn (£114bn) was wiped off the worth of the social media agency and founder Mark Zuckerberg noticed his private wealth plunge by $17bn.
If that’s matched in common buying and selling, it will be the most important one-day loss in worth for a US firm.
It was the corporate’s first full quarter following the Cambridge Analytica privateness scandal.
The agency stated it had 2.23 billion month-to-month energetic customers on the finish of June, up 11% on June 2017, the slowest progress in additional than two years.
Analysts attributed the consumer progress shortfall largely to European privateness guidelines that went into impact in Might.
The Cambridge Analytica scandal prompted a number of apologies from chief government Mark Zuckerberg and generated requires customers to abandon Fb, which has grown strongly since launching as a public firm in 2012.
The corporate had warned buyers to anticipate a surge in prices as a consequence of efforts wanted to deal with considerations about Fb’s insufficient dealing with of customers’ privateness.
Chief monetary officer David Wehner stated working revenue margin will sink to the “mid-30s” for greater than 2 years.
And quarterly income progress could be nearer to 30% for the remainder of the yr, as a consequence of forex fluctuations and customers selecting to have much less personalised adverts as they choose out due to the European Union’s Normal Knowledge Safety Regulation (GDPR).
“They’re speaking about forex headwinds, however extra we expect it is as a consequence of slower consumer progress given GDPR and extra give attention to privateness,” Morningstar analyst Ali Mogharabi stated.
Whole bills within the second quarter surged to $7.4bn (£5.6bn), up 50% from a yr in the past. Nevertheless, advert gross sales appeared unaffected by the scandal, rising 42% within the quarter to $13bn (£9.9bn).
Web earnings attributable to Fb shareholders rose to $5.11bn, or $1.74 per share, within the second quarter ending 30 June, up from $3.89bn, or $1.32 per share, a yr earlier.
Whole income for the quarter rose 42% to $13.23bn, beneath analysts’ estimates of $13.36bn