Facebook sinks after revenue and active users miss forecasts

  • Facebook shares sank by as much as 12% in after-hours trading on Wednesday after the company reported revenues and user metrics that fell short of analysts’ expectations.
  • Facebook’s second-quarter revenues totaled $US13.23 billion, lower than analysts’ forecast for $US13.33 billion according to Bloomberg. It was the first time since 2015 that Facebook missed revenue expectations.
  • Monthly active users totaled 2.23 billion in the quarter, missing the forecast for 2.25 billion. Daily active users totaled 1.47 billion, versus 1.48 billion expected.
  • Earnings per share beat expectations, at $US1.74 versus $US1.72 forecast.
  • The results followed an eventful quarter in which Facebook dealt with the fallout of the spread of Russian propaganda on its site, the Cambridge Analytica scandal, and controversy over how it moderates disinformation.

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