Facebook Takes Historic Plunge as Scandals Finally Take a Toll
- Quarterly sales, daily users fall short of analysts’ estimates
- Shares plunge after CFO warns of revenue growth slowdown
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Facebook Inc. plunged as much as 20 percent Thursday after months of scandal and criticism finally hit the company where it hurts: growth.
The social-media goliath’s financial performance had previously seemed immune to fierce critiques of its content policies, its failure to safeguard private data, and its changing rules for advertisers. But on Wednesday Facebook reported sales and user growth numbers for the second quarter that fell short of analysts’ projections, leaving investors reeling.