Facebook Shareholders Want to Fire Mark Zuckerberg as Chairman as Market Value Dropped a 24% ($150B) in Less Than 2 Hrs – UPD

250

Facebook market value dropped a 24% (nearly $150B) after it announced its second quarter financial results during the conference call, CNBC reports.

UPD July 20 (04:00 EST):

  • Facebook Investor Trillium Asset Management has drawn up a new proposal to fire  as chairman, Business Insider reports;
  • Trillium’s goal is to find a new chairman to avoid the situations like Cambridge Analytica data breach;
  • Despite all the efforts, it’s hard to achieve this goal as the same proposal was drawn in 2017 because of voting power;
  • Previously, to the question whether someone should be fired for the Cambridge Analytica data breach, Zuck is sure that he is the one, “I designed the platform, so if someone’s going to get fired for this, it should be me. And I think that the important thing going forward is to make sure that we get this right. In this case, the most important steps, in terms of, to prevent this from happening again, we’d already taken in 2014 when we had changed dramatically the way that the platform worked.”

Facebook’s worst day ever

Facebook reported its second-quarter earnings Wednesday during the conference call, and the results were worse than the investors expected.

The news resulted in wiping out more than $150 billion off Facebook’s market value. See it on the screenshot below:

facebook-market-value-pic

Source: CNBC

Facebook reported revenue of $13.23 billion and 1.47 billion users/day. Both numbers were much less than it was expected and put revenue at $13.36 billion and users/day at 1.49 billion.

The statistic spooked the investors and couldn’t distract them from what has happened to the social media platform before (Cambridge Analytica data breach) and one more bad news: a significant decrease in revenue growth rates and operating margins in the years ahead.

“As I’ve said on past calls, we’re investing so much in security that it will significantly impact our profitability. We’re starting to see that this quarter,” Zuckerberg said.

The interesting fact is also that Facebook’s number of US users didn’t grow at all, and it lost 3 million DAUs in Europe as a result of new privacy regulations (GDPR).

Source: Twitter

“Looking beyond 2018, we anticipate that total expense growth will exceed revenue growth in 2019,” David Wehner, Facebook’s chief financial officer, said. “Over the next several years, we would anticipate that our operating margins will trend towards the mid-thirties on a percentage basis.”


MORE HOT NEWS

Summary
Facebook Shareholders Want to Fire Mark Zuckerberg as Chairman as Market Value Dropped a 24% ($150B) in Less Than 2 Hrs - UPD
Article Name
Facebook Shareholders Want to Fire as Chairman as Market Value Dropped a 24% ($150B) in Less Than 2 Hrs - UPD
Description
Facebook market value dropped a 24% (nearly $150B) after it announced its second quarter financial results during the conference call, CNBC reports.
Nexter.org
Nexter.org
Nexter.org
/wp-content/uploads/2018/04/logo_nexterbg.jpg

Comments are closed.

More News from Nexter