Facebook shares fall 9 percent on revenue miss
July 25 at 4:26 PM Email the author
Facebook shares fell 9 percent on lower-than-expected revenue numbers from its second-quarter earnings report Wednesday.
Revenue totaled $13.23 billion, shy of the $13.33 billion analysts expected, raising worries that the political and social backlash against the company is affecting its bottom line. The company beat the profit forecast, with $1.74 per-share earnings.
“Despite facing important challenges, our community and business are off to a strong start in 2018,” said Mark Zuckerberg, Facebook’s founder and CEO. “We are taking a broader view of our responsibility and investing to make sure our services are used for good. But we also need to keep building new tools to help people connect, strengthen our communities, and bring the world closer together.”
Strong ad sales from Google, which is Facebook’s main competitor for online advertising, sent expectations for the social network’s earnings up, along with its stock price.
The number of monthly users — a key indicator of Facebook’s popularity — rose slightly, to 2.23 billion from 2.2 billion last quarter.
Facebook shares closed at $217.41, up more than 10 percent over the past month.