Facebook Shares Plunge on Growth Fears

Shares in Facebook fell 20% at the open on Thursday as investors shunned the social media giant, knocking billions off its market value

James Gard 26 July, 2018 | 4:32PM Alison Roff
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Facebook Shares Plunge

Social media giant Facebook (FB) plunged 20% at the open on Wall Street on Thursday as traders caught up with the company's disappointing second-quarter results. The shares had already slid in after-hours trading, wiping around $100 billion off the company's market value and the personal fortune of founder Mark Zuckerberg.

Wall Street analysts had estimated a rise in active users to 2.25 billion, but this fell short. A 50% rise in costs year on year was driven by investment in data security after the Cambridge Analytica scandal. What really spooked investors was a warning by Chief Financial Officer David Wehner that total revenue growth rates would fall in the second half.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Facebook Inc A338.03 USD0.00Rating

About Author

James Gard  is content editor for Morningstar.co.uk