Keep that in perspective.
This stock can fall much harder.
90 days ago the analyst still thought we were going to get 40% growth for the next year. And 35% in 2019. Now it looks like Facebook would be lucky to get 25% growth in 2019. The revenue growth has materially changed.
It isn’t about the earnings numbers. They CFO Wehner said they expect growth to decelerate. They also expect expenses to grow 50-60% into 2019.
Additionally, They missed on their user numbers. They were flat in North America, and they lost users in Europe.
FB is transitioning from a growth stock to a regular large cap stock. (Value, or not.)
Facebook conference call: “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.” Expenses expected to grow 50-60%
Top 3 biggest market capitalization losses in a single day
- Intel Corp lost $91 billion one day in September 2000.
- Exxon Mobil Corp lost $53 billion one October day in 2008.
- Apple had a loss of $60 billion on January 24, 2013.
Whereas on Wednesday, Facebook ended the after-hours session down 20 percent at $173.50, a loss of $126 billion.
Disclaimer: Consult your financial professional before making any investment decision.