Facebook Stock Took A Historic Beating Yesterday As It Lost Over $120b In A Single Day
It’s official. Facebook Inc. just had the biggest stock-market drop in American history. Until now, Facebook has appeared to be immune to the litany of scandals its business has generated over the past couple of years, with ever-increasing growth in revenue and users and an unsinkable stock price. On Wednesday, its ability to coast on its years of success finally seemed to give out. On an earnings call with investors, Facebook reported that its revenue grew by 42 percent over the same time last year, reaching $13.2 billion for the quarter—a number that was lower than the $13.3 billion analysts expected. The slight miss may have been what sent Facebook’s stock plunging more than 23 percent after the call in after-hours trading, but more likely it’s what’s going on with some of the social network’s metrics. Facebook"s margin fell to 44 percent in the second quarter from 47 percent a year ago as it spent heavily on security and initiatives to convince ...
