Facebook's shares tumble as growth disappoints

Facebook's shares tumble as growth disappoints

After the revenues of social media networks, Facebook shares fell by more than 20% on Wednesday and user growth was reduced by the expectations of investors.


The firm, who is facing backlog for fake news and privacy operations, said that at the end of June there were 2.23 billion monthly active users.

It was up 11% in June 2017, the slowest growth of more than two years.

It also warned the investors that the development expenditure will increase the profit in 2019, earn profit.

Facebook said that the revenue gains are expected to slow down, because people use new options to limit ads and increase the growth in less profitable foreign markets.

Facebook's shares tumble as growth disappoints

The firm is also planning to spend billions to monitor content, track advertisers and treat user data - in areas where it has to face regulatory scrutiny.

Is the owner of Instagram and What'sapp, which is investing in new features like firm Virtual Reality and Video.

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Initially Facebook shares fell nearly 12% in the post-New York business, but the firm got bullish because the firm underlined its expenditure plans.

Daniel Ives, Chief Strategist Officer of GBH Insights said that the firm's forecast was "nightmare".

He said, "He gave a very disappointing view of the second half of the year and 2019 and it is going to lose weight significantly on the stock in the near term."

Facebook's shares tumble as growth disappoints

Dave Lee, BBC North America Technology Correspondent, San Francisco


It is hardly Armegean for Mark Zuckerberg.

Absolutely, people are not obviously leaving Facebook. Monthly active users - that means people who talk at least once a month - were stable in America, sometimes in Europe a little more and more anywhere

But for a company, those numbers are used throughout the year, lack of meaningful development causes worry, if there is no panic.

Sadly, the company does not break the number of Europe in the more granular - which means that we can not see the impact of the Cambridge Analytics scandal on British users.

Analysts told me that they consider Cambridge anilica "blip" in the history of Facebook, although such a quarter would be even more effective than what we saw during the business hours of the second quarter.

During his earning call, Facebook warned investors to brace themselves: It is not expected that the revenue growth will improve for at least the remaining year.

Facebook profits in the quarter was $ 5.1bn, up 31% from the same period in 2017.

Revenues were $ 13.2 billion, up 42% annually, but the expenditure increased rapidly, 50% increased to $ 7.4 billion.

In the US and Canada there has been an increase in the user, due to the high-priced advertisements in the company's major markets, the company's main market.

The number of EU users fell between the rollout of strict privacy rules, though Facebook continued to attract new users in countries like Indonesia.

Mr. Eves said that the popularity of Instagram should help Facebook crack down on challenges on its network.

In February, the research firm EMarketer had estimated that the number of Facebook users under the age of 25 would fall by approximately 2 million this year.

But it predicts that Facebook-owned Instagram will add 1.6 million users in that age range in 2018.