Over $109bn wiped off Facebook's market cap after growth shock

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"Facebook has also been sucked into the probe into alleged Russian meddling in the 2016 presidential election". "The core Facebook platform is declining", said Brian Wieser, an analyst at Pivotal Research Group. However, average revenue per user in the region rose despite the lack of growth.

Nearly all of Facebook's revenue - $13 billion of the total $13.2 billion - came from online advertising, a sector dominated by the California social network along with Silicon Valley rival Google. The company remains in a dominant position in mobile advertising alongside Alphabet Inc.'s Google.

Three key factors are driving Facebook's expected revenue growth decline, Wehner said.

The privacy issue is a concern for the whole tech sector, as it could make it harder for these companies to sell user data or use it to make their products more effective. In addition, the company expects to invest in products like Stories "that now have lower levels of monetization", while the introduction of new controls for users to limit their data-sharing with Facebook "may have an impact on our revenue growth", the CFO said. Facebook has beaten both of those big, frightening days on the U.S. stock market. and it's just another day with no major news.

Facebook's grim forecast predicts that margins will be much lower for the next few years due to "more choices around data privacy" as well as currency market predictions and the GDPR, according to a statement made by Facebook CFO David Wehener during the earnings call.

Facebook has been struggling for years with criticism about its content policies, its failure to safeguard private data and its changing rules for advertisers. Most of its large institutional investors aren't panicking.

But others await. Is this a temporary setback for the giant social network, or the start of a painful new journey? However, it saw monthly user growth of just 1.54 percent in Q2, down from 3.14 percent during the previous quarter, with monthly active users now at 2.23 billion.

"Our community and business continue to grow quickly", said Zuckerberg.

The "Dispatches" show featured an undercover reporter who went to work at Irish staffing firm CPL Resources, which acts as Facebook's largest centre for United Kingdom content moderation. That figure includes some $2.7 billion in cash and real estate, according to Bloomberg's Billionaire index.

Tom Buontempo, president of ad agency Attention, said a first step is getting more companies to open free Instagram accounts, which is needed to advertise.

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