Facebook's scandals hit where it hurts

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Facebook's scandals hit where it hurts

July 26, 2018 - 12:09
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Scandals related to Facebook finally hit where its hurts most - company's growth, Bloomberg reports. Results of company's operation in second quarter resulted in shares by 24%. Market value of social media company dropped by $151 billion at once.

Photo © Gerd Altmann, CC0 1.0

Scandals related to Facebook finally hit where its hurts most - company's growth, Bloomberg reports. Results of company's operation in second quarter resulted in shares by 24%. Market value of social media company dropped by $151 billion at once. If fall on Thursday reaches the same scale, then it will be the largest one-day collapse of American company.

Due to its robust growth company has not suffered a lot after critics of its content policy, failure to safeguard privacy data and changes in advertising rules. However, on Wednesday it informed that sales and number of users growth did not meet expectations of analytics.

And for those who thought that shares will bounce back soon, the company said that results will not get better till the end of this year.

However, the reality is that 2,23 billion of active monthly users of Facebook cannot grow forever.

Company's revenue grew by 42% to $13,2, while analytics expectations were $13,3 billion. Social network is still containes most valuable database in the world that attracts multiple user and easily provides easy access of advertisers to large audience.

Before announcing results, Facebook shares closed at record level of $217,50. Growth this year was 23%.

 

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