Facebook heading for its worst trading day ever

Barbara Ortutay, The Associated Press</span>
Published Thursday, July 26, 2018 8:49AM EDT
Last Updated Thursday, July 26, 2018 10:52AM EDT

NEW YORK -- Facebook may be heading for its worst day on the markets in its history a day after the company revealed that user growth, amid swirling questions about how their information is used, has slowed.

The stock plunged 19 per cent in early trading Thursday, eradicating well in excess of US$100 billion in market value.

The social media company's financial results, released late Wednesday, fell short of Wall Street expectations as the company continues to grapple with privacy issues. It also warned that revenue would decelerate as it promotes new products

Facebook had 2.23 billion monthly users as of June 30, up 11 per cent from a year earlier, but well short of what industry analysts had been expecting.

The results are from the first full quarter following the revelation of the Cambridge Analytica privacy scandal. The company is also contending with European privacy rules that went into effect in May.

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