Social media

Facebook shares plummet over 20% after earnings report


Shares of Facebook Inc. lost more than 20% in after-hours trade on Wednesday following a disappointing earnings report. The social media giant posted revenue and daily active user figures which were below expectations. Net income stood at $5.1 billion, rising 31% compared to the previous year, while the number of active users globally and on a daily basis grew 11% and reached 1.47 billion on average for June 2018.

The company was hit with a major scandal earlier this year, when it was revealed that an application on the social media platform accessed data from as many as 87 million users without their permission. Facebook’s CEO Mark Zuckerberg subsequently testified in front of the United States Congress and the European Parliament. The user engagement figures may have also been impacted by the European Union’s General Data Protection Regulation (GDPR) which came into force on May 25.


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