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

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

On Thursday afternoon, Facebook watched its capitalization drop by $119 billion, lowering its valuation to $510 billion, which represents a 19 percent drop, according to CNBC.

And slower growth on the primary Facebook platform doesn't overshadow growth on its other holdings, they say. Amazon shares, up 55 percent this year versus 6 percent for the S&P 500 as of Thursday's close, trade at a premium, too.

Many are pointing the blame at founder and CEO Mark Zuckerberg. He lost $16.8 billion in extended trading.

Several factors this earnings call contributed to Facebook's disastrous loss in market value.

But amid every controversy, Facebook - the public company and business - seemed unscathed.

The report, which marked Facebook's first full quarter since the Cambridge Analytica scandal, startled investors with a bevy of red flags about setbacks to its revenue and user growth.

Investors, who have ignored recent scandals to boost shares to an all-time high, turned the other way in after-hours trading.

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He added that Facebook has "a track record of resetting revenue growth and expense expectations only to turn around and exceed those expectations the following quarter".

For more than a year - ever since Zuckerberg published a 5,000 word manifesto arguing that Facebook needs to make the world a better place by bolstering civic engagement and addressing social ills - the company has seemed torn between its philosophical mission and its economic one. "Instagram has over 1 billion users, and all Facebook apps (Facebook, WhatsApp, Messenger, and Instagram) have 2.5 billion unique monthly users". Worldwide daily user growth for Facebook's namesake service slid for its sixth straight quarter, bringing it to almost 1.5 billion users in the second quarter.

Discussed in an earnings call late last night, Facebook experienced zero growth in user numbers across North America, and actually lost users in Europe by about 1m. The Observer revealed that data from millions of Facebook users had been inappropriately passed on to the political consultancy, which wanted to influence voters. The company's quarterly revenue fell slightly short of meeting the expectations of Wall Street analysts.

"Facebook was valuable when you could go there and pick and choose the type of content that you wanted to see".

The quarter was also marked by Europe's implementation of strict new data laws, which Facebook said led to fewer daily visitors in that region.

On Wednesday the initial fallout from Cambridge Analytica appeared in Facebook's financial results and forecast and it was a game changer. The stock tanked that day after the company failed to convince investors that it could sell mobile advertising.