Facebook Shares Plunges 20% After It Warns Sales Growth Will Drop

Facebook Shares Plunges 20% After It Warns Sales Growth Will Drop

By  rumourjuice.com

Facebook's stock fell as much as 24% in after-hours trading on Wednesday after the social network announced it expects revenue growth to drop as it "puts privacy first" and rethinks its product experiences.

The company's sharp response followed an incomes report that showed slower than predicted growth in user numbers and advertisement revenue.

Facebook Shares Plunges 20% After It Warns Sales Growth Will Drop

Facebook Shares Plunges 20% After It Warns Sales Growth Will Drop

Total revenue hit $13.2 billion for the quarter, up 42% from the same period the previous year but below Wall Street estimations. The stock bounced back slightly as the evening wore on, however, the news clearly alarmed investors.

The incomes report gave the clearest glimpse yet into how the Cambridge Analytica debacle affected the business. News that Cambridge Analytica accessed information from about 87 million Facebook (FB) users without their permission broke in the closing weeks of the first quarter.

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