Facebook stock plunges in after-hours trading following earnings report

Facebook Inc CEO Mark Zuckerberg's fortune tumbled by US$16.8 billion in late trading Wednesday

That growth trouble, in turn, sent Facebook's share price down over 20 percent in after-hours trading.

Investors were more than a little put out by Facebook execs saying they expect revenue growth to slow as they focus greater attention on user privacy. Overall, Facebook grew its global users by 11 percent from the same time past year. Analysts said the law contributed to the company losing 3 million daily users in the European Union during the second quarter, the first time it has seen such a dip. Like Facebook, Instagram depends on ads to generate revenue, and Stories is supposed to help sell more ads.

Facebook hit the headlines earlier this year when it came to light that Cambridge Analytica had used data, harvested from Facebook users, to target USA voters with personalised political advertising, based on psychological profiles.

Almost all of the services have received greater scrutiny since USA intelligence agencies in January 2017 revealed that organizations tied to the Russian government had seeded content on the platform to shake up the 2016 US presidential election.

The second quarter of 2018 was the first full accounting period following the exposure of the Cambridge Analytica scandal in March. Though Facebook-specific global DAU rates were up 11 percent year over year - with growth led through users in India, Indonesia and the Philippines - it was less than Wall Street was projecting.

According to Business Insider, a Facebook investor has drawn up a new proposal to oust Mark Zuckerberg as chairman, 10 months before the social networking giant's next shareholder meeting. We'll keep you updated on the latest.

Before Facebook's tumble, more than half the returns in the Standard & Poor's 500 index this year had been provided by just a handful of technology-related stocks, said Savita Subramanian, an equity strategist at Bank of America Merrill Lynch. The Facebook CEO saw his net worth tumbled by $20billion, a record drop, taking him down four spots in Forbes' World Billionaires List. Indeed, the drop Thursday morning was sharper than the multi-day stock slide in March following revelations of data misappropriation by Cambridge and others.

Facebook's stock plunged Wednesday following the company's second-quarter earnings report. Chief Financial Officer David Wehner said revenue growth rates would decline in the third and fourth quarters. While the company reported a growth in all markets, its overall revenues missed analyst estimates.

As of publication, Facebook had not yet responded to a request for comment. "As such, we would be aggressive buyers of the stock on weakness this morning".

Facebook has struggled in recent years with several privacy issues.

But there's also been a notable slowdown in user growth. Facebook on Wednesday reported second-quarter sales and user growth that fell short of analysts' projections.

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