Update: Facebook lost around $120 billion in market value on Thursday following its disappointing earnings.
Facebook missed quarterly revenue expectations for the first time in years as shares of the social media giant dropped 8 percent in after-hours trading Wednesday. The earnings report follows a tumultuous quarter for Facebook, which has faced questions from Congress and others about handling of misinformation on its site and user privacy.
The company posted $13.23 billion in revenue for the second quarter, missing estimates of $13.36 billion. Its $1.74 earnings per share beat expectations of $1.72. 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.
Wow, Facebook misses on revenue, monthly users and daily users. Stock falling.
— Sarah Frier (@sarahfrier) July 25, 2018
Despite the rocky quarter, Facebook shares had hit an all-time high before Wednesday’s earnings report and its quarterly revenue was still up 42 percent from this time last year.
“Our community and business continue to grow quickly,” Facebook CEO Mark Zuckerberg said in a statement. “We are committed to investing to keep people safe and secure, and to keep building meaningful new ways to help people connect.”
Facebook's second quarter revenue:
Q2 2018: $13.2 billion
Q2 2017: $9.3 billion
Q2 2016: $6.4 billion
Q2 2015: $4.0 billion
Q2 2014: $2.9 billion
Q2 2013: $1.8 billion
Q2 2012: $1.2 billion
Q2 2011: $895 million
Q2 2010: $431 million
— Jon Erlichman (@JonErlichman) July 25, 2018