Facebook shocker: Company expects ‘deceleration’ in revenue growth, stock plunges more than 20 percent in after-hours trading

as mentioned in Facebook shocker: Company expects 'deceleration' in revenue growth, stock plunges more than 20 percent in after-hours tradingFacebook shares plunged more than 20 percent lower Wednesday in after-hours trading, following earnings results and a conference call that revealed the company had missed analysts' forecasts on revenue, its growth rate for daily and monthly active users had slipped, and it expects revenue growth to decelerate in the future. Facebook said its daily active users and monthly active users both grew by 11 percent compared to the same period a year ago. Its daily active users were at 1.47 billion on average for June. By contrast, in last year's second-quarter earnings report, Facebook's daily and monthly active users both grew by a stronger rate of 17 percent. In the first quarter of this year, Facebook's daily and monthly active users grew 13 percent from a year earlier.

Facebook stock plunges 20% after CFO warns sales growth will slow

Wehner said a focus on "putting privacy first" in its product development process will likely "have some impact on revenue growth." That represents a slowdown from the 41 million daily users it added in the same quarter last year. The number of daily users remained flat in the United States and Canada and declined in Europe. Facebook had 279 million daily users there in the second quarter, down from 282 million in the prior quarter. But any benefits found there could come at the expense of ad sales growth.

Facebook stock hits record high ahead of earnings

As it stated in Market PulseFacebook stock hits record high ahead of earningsFacebook Inc. fb+1.32% stock hit a record high in early afternoon trading Wednesday, ahead of the company's second-quarter earnings. The stock was up 1.6% to $218.21 at 12:56 p.m. Eastern Time after closing at $214.67 Tuesday. Investors appear to continue to shrug off the seemingly daily gaffes Facebook has been confronted with during the quarter. Despite the issues with privacy and security, Chief Executive Mark Zuckerberg has said that thus far the company has not seen an impact on the company's top line. The company is set to report earnings after the close.

collected by :Roy Mark