Facebook just had its worst week in the company’s history

Facebook shares sink 8% as Q2 revenue and user growth misses analyst estimates

The General Data Protection Regulation (GDPR) in the European Union also will cause a revenue drop. Those problems hadn't mattered to the success of the business - until now. The decline in Facebook's market value was roughly equivalent to the entire value of some of the country's best-known companies, including McDonald's, Nike and industrial conglomerate 3M.

Facebook shares have been in the tank since the company released its earnings Wednesday afternoon. We're starting to see that this quarter.

Facebook has been an omnipresent part of American news for what seems like all of 2018, and rarely with a positive connotation.

It had become an article of faith on Wall Street and in Silicon Valley: Quarter after quarter, year after year, the world's biggest technology companies would keep raking in new users and ever-higher revenue, driving their share prices endlessly upward.

Facebook has faced dozens of lawsuits over its handling of user data in a scandal also concerning the United Kingdom firm Cambridge Analytica.

Facebook has also faced public image problems because of the way Russian Federation used the site to try to influence the 2016 US presidential election. "Our view is that the company is far from out of the woods", Brian Wieser of Pivotal Research said. It reported 2.23 billion monthly active users and 1.47 billion daily active users, which were both up 11 percent year-over-year but narrowly missed estimates.

Similarly, the number of daily active users on the platform - an important metric for judging the success of a website or app - only grew by 22 million, the lowest growth figure since 2011.

Total net sales for the second quarter rose 39 percent to $52.9 billion, missing the average analyst estimate of $53.4 billion. Analysts projected $13.3 billion. The stock tanked that day after the company failed to convince investors that it could sell mobile advertising.

Facebook said it doesn't expect to see revenue growth for a while, according to CNBC.

After having weathered all of the above, declining financial growth and static user growth has finally resulted in a major investor panic.

Facebook's shares recovered somewhat after the call.

As many of you who regularly commute by public transport, or those who watched the World Cup may, have noticed Facebook has been on a push to regain user trust following its privacy scandals. "In the mid-term advertisers still believe in Facebook, as do its users". The company may have halted more ad purchases than expected as it applied a broad definition of what's considered "political".

After the earnings report, executives worked to explain the potential of Facebook's other properties, not just the main social network, to fuel growth. "And it reflects that many people use more than one of our services", he said. The company said headcount was 30,275 as of June 30 - an increase of 47 percent year over year. The results spelled out disaster for its market value, despite the company heading into Wednesday with a share price of $217.50. That surprised investors because of the belief that the new laws wouldn't hurt revenue.

Still, Facebook's sharp drop seems to have had a limited effect on the broader market, which has shown signs of gaining traction in recent weeks as companies largely reported strong second-quarter earnings.

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