Facebook has lost around $120 billion in market capitalization, after its earnings report after the market close on Wednesday missed expectations on revenue and showed slowing user growth The news and how the call as handled has rattled investors. Worries about privacy and their business dealings such as that with Cambridge Analytica has not helped the stock either.
The social-media behemoth’s stock lost roughly one-fifth of its value in the extended session Wednesday. The stock dropped about 7% immediately after the earnings report was released, then plummeted to a loss of more than 20% as a conference call with analysts progressed.
The company reported $5.12 billion in net income for the quarter, which amounts to $1.74 a share, up from $3.89 billion or $1.32 a share in the year-ago period.
Profits were not what rattled investors, though. Facebook recorded sales of $13.04 billion, a 41.9% increase from a year ago, but that was lower than analyst estimates and previous growth rates. User growth was flat in the U.S. and Canada, and declined in Europe from the previous quarter.
