Facebook sued after stock plunge ‘shocked’ market

Facebook sued after stock plunge ‘shocked’ market

Facebook sued after stock plunge ‘shocked’ market

Though privacy concerns are definitely real, as seen after the Cambridge Analytica fiasco, the real reason people are bailing on Facebook likely has more to do with their algorithm which censors the content they believe is "good for people's well-being".

Facebook has also faced public image problems because of the way Russian Federation used the site to try to influence the 2016 US presidential election.

Facebook suffered a blow in China on Wednesday when regulators there withdrew their approval of a company innovation hub to support local startups, the New York Times reported on Wednesday, citing a person familiar with the matter. The company's quarterly revenue fell slightly short of meeting the expectations of Wall Street analysts. Amazon shares, up 55 percent this year versus 6 percent for the S&P 500 as of Thursday's close, trade at a premium, too.

In the wake of the Cambridge Analytica data-privacy scandal, "Legal/regulatory developments have led to changes meant to support FB's platform and users, but they will notably restrain growth and profits for at least the next couple of quarters, in our opinion", Scott Kessler of CFRA Research wrote in a note. Daily usage was unchanged in Facebook's biggest market, the United States and Canada, at 185 million daily users. It reported revenue of $13.2 billion for the quarter, missing Wall Street estimates and rattling investors.

Before Facebook's tumble, more than half the returns in the Standard & Poor's 500 index this year had been provided by just a handful of technology-related stocks, said Savita Subramanian, an equity strategist at Bank of America Merrill Lynch.

"Our community and business continue to grow quickly".

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However, the law risks further alienating Israel's large Arab minority, who have long felt discriminated against. The question of Israel's status as a Jewish state is politically controversial and has always been debated.

In a research note, he said Facebook's outlook "suggests that while the company is still growing at a fast clip, the days of 30 percent-plus growth are numbered".

"I think many investors are having a hard time reconciling that deceleration", Brent Thill, an analyst at Jefferies LLC, told Facebook executives, asking for a little more clarity on the reasoning.

The change was due to the European Union implementing the General Data Protection Regulations, which imposed new rules on how internet companies store customer data. In addition, Facebook said its daily active users rose 11 percent from a year earlier to 1.47 billion, compared with 13 percent growth in the previous quarter. Quarter after quarter, Facebook has been a remarkably reliable growth machine. Traders are bracing for a decline in tech stocks when the markets open Thursday.

Facebook used to be made out of corporate Teflon.

Some investors were also dismayed with Facebook's revelation about Instagram Stories, which allow users to post videos or photos that disappear after a day.

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