Facebook hit with class-action suits following stock tumble

Facebook co-founder and chief executive Mark Zuckerberg took a major hit too. He lost $16.8 billion in extended trading

FB stock was down about 7.8% after the bell on Wednesday following the news, while shares were up roughly 1.3% during regular trading hours. Facebook's market cap was $629 billion at market close Wednesday, and ended the day Thursday at around $510 billion.

The fallout comes after the company's announcement that growth might slow after "an avalanche of scandals involving misinformation and data misuse". Shares of Facebook fell 17 per cent in the days after news broke.

"Founder and CEO Mark Zuckerberg has said that he has no intention of letting Facebook become a platform known for celebrating humanity's worst impulses". He lost $16.8 billion in extended trading.

The stock value drop amounted to a $119-billion loss. "There are always going to be these one-day disasters".

But amid every controversy, Facebook - the public company and business - seemed unscathed.

Facebook's Seattle engineering center.

The problem: weaker-than-expected revenue growth, Facebook's first such miss since 2015.

Facebook stocks plummet more than 20% amid concerns over growth
Facebook's daily active users for the quarter were 1.47 billion, shy of the 1.49 billion forecast by StreetAccount and FactSet . The average estimate of 15 analysts surveyed by Zacks Investment Research was for earnings of $1.75 per share.

According to the research firm, Facebook-owned Instagram is making up for some of the slowdown in growth at social network and will generate $8.06 billion in worldwide ad revenue this year.

Despite the record stock price tumble, the tech giant still made $13.2 billion (€11.3 billion) in the second quarter of 2018, a year-on-year rise of over 40 percent.

According to techcrunch.com, it seems as if Facebook announced the stat in hopes of deflecting attention from the fact that its user count shrank in Europe and was flat in the USA and Canada, contributing to extraordinarily low monthly and daily user growth. The Observer revealed that data from millions of Facebook users had been inappropriately passed on to the political consultancy, which wanted to influence voters. Without knowledge on what demographic the three million European users who abandoned the service fit into, it's hard to know just how easy it'll be for Facebook to win them back. Controversies came and went, but nothing stuck. And it seemed Facebook would shrug off the recent rash of scandals, too - Russian election interference, the mishandling of as many as 87 million people's personal information by Cambridge Analytica and the unchecked spread of fabricated news.

Until now, he said, there was a sense that the vast majority of users didn't fully understand Facebook's business.

In an understandable development at the announcement, Facebook's stock has taken a tremendous nosedive, down almost 20% at peak.

Normally, a drop that steep in a company so high profile would bring out bargain hunters, investors who see the opportunity for a quick profit in a popular stock.

Caty Weaver wrote this story.

Related News:



Most liked

House Freedom Caucus Leaders Call For Rosenstein Impeachment
Donald Trump nominated him to serve as Deputy Attorney General for the United States Department of Justice on February 1, 2017. Meadows downplayed any disagreement with the speaker on the matter, saying he had spoken to the speaker on Thursday morning.

Nick Jonas and Priyanka Chopra Are Engaged
Since May, the "Quantico" star and crooner were spotted on dates in New York City and Los Angeles. It's been nearly two months since Nick Jonas and Priyanka Chopra confirmed their relationship .

They Looked Like Zebras, But Were Braying
Egyptian student Mahmoud Sarhan shared his images on Facebook , saying the zebras were obviously painted donkeys. The picture shows a suspicious-looking animal, with a lighter snout and longer ears than a typical zebra's.

U.S. won't recognize Crimea annexation; Trump-Putin II delayed
And facing lawmakers upset with what they see as presidential bungling, loose rhetoric and inconsistency on foreign policy, Mr. Bolton said they want to hold the next meeting without the cloud of Special Counsel Robert Mueller's investigation.

Donald Trump claims Russian Federation is interfering in U.S. midterms to help Democrats
Many Republicans have said they were disappointed in the one-on-one meeting between the two leaders, followed by Mr. Trump's proposed Washington meeting with Russian President Vladimir Putin has been delayed until 2019.

Underground Lake Found On Mars Beneath A Mile of Ice
The footprints are color-coded corresponding to the "power" of the radar signal reflected from features below the surface. However, within a 20 km-wide zone a particularly bright radar reflection underneath the layered deposits is revealed.

Trump House Allies Move to Impeach Rosenstein
Democrats have argued that House Republicans clashes with Rosenstein are little more than a pretext to weaken Muellers efforts. The Justice Department essentially says it's trying to comply, but that these Republicans want a lot, and it takes times.

Winning Mega Millions jackpot ticket sold in California
Two, sold in MA and Texas, included the optional Megaplier (a $1 purchase available in most states) and are worth $3 million each. Someone has become $522 million dollars richer after purchasing the winning Mega Millions ticket in California.

No-deal Brexit risks 'civil unrest', warns Amazon's United Kingdom boss
Britain would find that challenging but in the end we would find a way not just to survive but to thrive economically. Raab said: "Well, I think that's a rather irresponsible thing to be coming from the other side".

Loris Karius - Liverpool didn't warn me before Alisson signing
Because we've had these young boys around in the last few years, I think we are little bit better in dealing with that. Liverpool manager Jurgen Klopp says his team's "next step" is to win trophies but he "cannot give guarantees".

Arab parliamentarians hail Saudi Arabia's role in supporting Palestinians
Saudi Arabia said the adoption of the law would also be a barrier to ending the decades-long Israeli-Palestinian conflict. A large influx of non-Jews could eventually make Jews a minority in their own country, government officials say.

Cooler, more comfortable weather on the way
Do you have photos or videos that could help contribute to this story? Hang in for a sticky and locally wet ride this week! The severe weather is over, but the rain continues as scattered showers and a few rumbles are expected through the weekend.

Donald Trump: 'Tariffs are the greatest!'
The U.S.is also in the middle of a trade dispute with China and is threatening to impose new tariffs on the European auto sector. Trump is tweeting that trade partners need to either negotiate a "fair deal, or it gets hit with Tariffs".

Police accidentally tear gas several Tour de France riders amid farmers' protest
CARCASSONNE, France-So the era of Team Sky dominance at the Tour de France has come to this. It was not immediately clear whether protesters or police used the chemicals.

Erdogan says treatment of Germany's Ozil racist and unacceptable
Leon Goretzka, 23, Lars Stindl, 29, and Thomas Mueller, 28, have also played well for Germany in the attacking midfield role. Ozil was part of the German team that suffered an embarrassing exit at the recent Fifa World Cup.