Facebook's stock lost around 20% of its value after announcing that second-quarter earnings were lower than expected. Facebook CEO Mark Zuckerberg, lost nearly $16 billion due the sell-off of Facebook stock. The social media company lost around $120 billion in market value, dropping over 40 points after Facebook's Chief Financial Officer David Wehner said the company expects to miss its benchmarks in the second half the year.
Wehner told investors that Facebook’s “total revenue growth rates will continue to decelerate in the second half of 2018, and we expect our revenue growth rates to decline by high single-digit percentages from prior quarters sequentially in both Q3 and Q4.”
Facebook reported $13.23 billion in second-quarter revenue, missing analysts' estimates that the company would have revenue of $13.36 billion. Facebook also fell short on advertising revenue projections, earning $13.04 billion while analysts expected it to be around $13.16 billion.
Wehner also said that Facebook lost around one million monthly users in Europe as a result of the General Data Protection Regulation recently passed by the European Union.
The stock hit comes as the social media company has been navigating multiple scandals on how it handled user's private data, and the company's efforts to combat hate speech and "fake news" that is spread on the platform.
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