Shares of Facebook fell more than 20% after reporting revenue

ECONOMY

NEW YORK, July 26. /Basereporter.com/. Corporate reporting Facebook, published on Wednesday, disappointing analysts, causing the value of the shares of the company, which owns the eponymous social network, fell more than 20%. This was reported by Reuters.

Facebook revenue for the second quarter of 2018 (ended June 30) increased by almost 42% compared to last year and reached $billion of 13.23 However, these results fell short of analysts ‘ expectations, forecast revenue in the amount of $13,36 billion.

Facebook’s net profit increased to $5,11 billion (us$1.74 per share). In the second quarter of 2017, the profit of the company amounted to $3,89 million ($1.32 per share). Analysts polled by the Agency predicted that the figure will be $1,72 per share.

Revenue from placing advertising on the social network during the second quarter increased by 42% to more than $13 billion, but the costs to strengthen the security of user’s personal information after scandals involving data breaches has risen by 50% compared to 2017, reaching $7,37 billion.

In addition, analysts were also disappointed with Facebook’s data about the increasing number of users of the social network. Reuters experts believed that the number will amount to about 2.25 billion, however, according to published reports, for the quarter, the social network, there were only 2.23 billion active users.

After the close of trading on the new York stock exchange on Wednesday the company’s stock price fell more than 20% amid poor accountability. According to the Agency Bloomberg, that the state, the founder and head of the social network of Mark Zuckerberg fell by nearly $17 billion to roughly $70 billion If this situation persists at the end of trading on Thursday and the stock will not gain value, then Zuckerberg can drop in compiled by the Agency for the rating of the richest people in the world with the current third to at least the sixth position.

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