Mark Zuckerberg announced an unusual statistic in the conference with finance experts yesterday. The announcement was all about the reduced revenue growth rates of the Facebook Inc. The company share was decreased by more than 20% straightaway after the earnings report was released. It has missed the Wall Street’s expectations on the basis of both revenues and its number of active users. This plunge also wiped out around $130 billion of the company’s revenue and affected its financial structure.
The stock of the company fell more than 7%. In the earning’s call, Chief Financial Officer David Wehner revealed that the social-media giant believes the revenue downfall to continue. Wehner said, “Our total revenue growth rates will continue to decelerate in the second half of 2018, and we expect our revenue growth rates to decline by high single-digit percentages from prior quarters sequentially in both Q3 and Q4,”. He also stated that the company still expects expenditures to grow 50% to 60% from the previous year.
The probable reason behind the declining sales record of Facebook can be the controversies of data protection scandals. CEO Mark Zuckerberg stated the call that the technical team is dedicatedly working on the safety, security and privacy matters. He told in the conference “We’re investing so much in security that it will start to impact our profitability, we’re starting to see that this quarter,“.