Facebook on Wednesday reported their Q2 2018 earnings, which revealed that even though revenue increased 42 percent to $13.2 billion, it was still lesser than the Wall Street estimates of $13.3 billion. It fell short of analyst's projects after three years, and reportedly the company told Wall Street that the numbers wouldn’t get any better this year. The last time the company missed their revenue estimates was in the first quarter of 2015.
As per a Bloomberg report, Facebook shares plunged as much as 24 percent after Chief Financial Officer David Wehner said revenue growth rates would decline in the third and fourth quarters. Over $120 billion has been wiped off the company's market value CEO Mark Zuckerberg's also lost as much as $16.8 billion after the late trading. As per reports, this will also mean that he will slide to sixth place from third on the Bloomberg Billionaires Index.
Over the last few months, Facebook has been marred with data breach scandal, where data of millions have allegedly been compromised with a third-party firm – Cambridge Analytica. There is also a never-ending debate over the company’s moderation policies for content posted on the social network. So even after the impressive growth, the company shares slipped because it was not able to meet their estimates.