Facebook Stock Plunged as Much as 23%

Facebook (FB) stock price plummeted more than 23% in the extended session on Wednesday (July 26th) due to concerns that slowing user growth will impact revenue. After the market closed, the share price plunged to US$165.96, representing a 23.7% drop from its closing price of US$217.7 per share.

Mark Zuckerberg's social media company experienced selling pressure due to warnings from its executives regarding slowing user growth, which could impact near-term revenue. Until July 25th, 2018, the stock, traded under the symbol FB, had recorded an increase of more than 23% (year-to-date). However, this investor gain vanished in a single day.

FB had actually overcome the crisis related to the user data leak scandal by Cambridge Analytica, allowing its stock price to remain above US$200 since July 6th, 2018. However, this anxiety was used as an opportunity to realize profits. For information, FB's total revenue in the three months ending June 2018 grew by 42% to US$13.23 billion compared to the same period the previous year. Meanwhile, the company's profit grew by 31% to US$5.1 billion.

(Read Databoks: How Much Indonesian Facebook User Data Was Leaked?)