It had become an article of faith on Wall Street and in Silicon Valley: Quarter after quarter, year after year, the world's biggest technology companies would keep raking in new users and ever-higher revenue, driving their share prices endlessly upward.
Facebook has recorded the biggest fall in corporate history as its value plunged by $120bn, when markets opened in NY.
Facebook itself could be set for its worst day in six years as a public company as its stock dipped 20.4 percent to $173.20 in premarket trading. The earnings report follows a tumultuous quarter for Facebook, which has faced questions from Congress and others about handling of misinformation on its site and user privacy. "It's the F in FAANG, but what's to say that, 10 years from now, Facebook isn't the next Myspace and something else has taken its place?"
Facebook on Wednesday reported second-quarter sales and user growth that fell short of analysts' projections. It also is bracing for currency fluctuations as the dollar gets weaker.
A total of $128 billion was wiped off Facebook's value in just two hours following the second quarter briefing, the first since the Cambridge Analytica scandal and new European Union data rules came into effect.
Read the full story at Fox News. All told, the US$119 billion of its value that was wiped out is worth almost as much as McDonald's.
Facebook (NASDAQ:FB)'s European user base declined by 1 million users and as mentioned above, growth remained static in the U.S. and Canada.
Facebook said it had 1.47 billion daily active users in June, compared with the 1.48 billion average of analysts' estimates compiled by Bloomberg.
The company said for the first time that more than 2.5 billion users interact with at least one of its apps each month, but analysts have said many of them are spending more time with Messenger, WhatsApp and Instagram. That push, along with advertising, is behind the 47% explosion in the employee ranks between last year's second quarter and the 2018 period.
Shares in Facebook tumbled 19 per cent on Thursday on the United States' Nasdaq exchange to close at US$176.26 ($259.80) after sales and growth forecasts reported a day earlier, after normal trading closed, disappointed investors.
The threat of additional privacy regulatory setbacks remains a concern, according to analysts.
Trillium's proposal, if greenlit by investors including Facebook's own management, would require the company to appoint an independent chairman, breaking up Zuckerberg's dual role as CEO and chairman.