Twitter shares opened down 14 percent Friday after the company reported a decline in monthly active users and weak guidance.
Twitter reported second-quarter earnings before the bell on Friday:
- Earnings per share: 17 cents vs. 17 cents, according to a Thomson Reuters consensus estimate
- Revenue: $711 million vs. $696.2 million, according to a Thomson Reuters consensus estimate
- Monthly active users (MAUs): 335 million vs. 338.5 million, according to StreetAccount and FactSet estimate
Shares were dropped as much as 18 percent in premarket trading when the report was released – READ MORE
Mark Zuckerberg is counting the cost of user disenchantment with Facebook Inc.
His fortune tumbled by $16.8 billion in late trading Wednesday, as shares of the social media giant slid 20 percent at 5:37 p.m. in New York on disappointing results. If that holds through Thursday’s close, he will slide to sixth place from third on the Bloomberg Billionaires Index. It would also wipe his $13.7 billion of gains for the year, leaving him with just less than $70 billion.
Well, it couldn’t last forever.
And Zuckerberg had it coming. If you believe in karma.
Facebook’s investors have been brushing off the company’s political and privacy scandals since the 2016 US election. That was until Facebook chief financial officer David Wehner said on a second-quarter earnings call today (July 25) that those scandals would take an extensive toll on the company’s finances.
Facebook expects revenue deceleration “in the high single digits for the next couple of quarters,” Wehner said, responding to an analyst who asked about the company’s “fairly dramatic deceleration in revenue growth.” And Wall Street shuddered.
Facebook’s stock plunged by as much as 23% in after-hours trading, slashing more than $150 billion off the company’s market capitalization.