(From The Guardian)
Facebook stock price tumbled more than 20% in after-hours trading, after the company’s chief financial officer said revenue growth would “continue to decelerate in the second half of 2018” as the company increased its investment in security and privacy.
In its earnings report for the second quarter of 2018, Facebook just missed Wall Street’s estimates on revenues and user growth, though it still made $13.2bn – a 42% year-on-year increase.
Monthly active users were still up by 11% year over year to 2.23 billion, as were daily active users, at 1.47 billion. However, growth was flat in the US and Europe, the company’s largest advertising markets.
As Wall Street analysts were expecting stronger user growth to 1.49 billion and revenues of $13.3bn, the company’s stock price fell precipitously during an earnings call.
“We are investing so much in security that it will have a significant impact on our profitability,” said the CEO, Mark Zuckerberg, during the call, referencing a commitment he first announced in November 2017 in an effort to clamp down on foreign election interference, misinformation and hate speech. “We are starting to see that this quarter.”