Mark Zuckerberg might be in trouble, as Facebook stock took one of the biggest hits on Thursday, losing almost $16 billion. On Wednesday, Facebook CFO…
Mark Zuckerberg might be in trouble, as Facebook stock took one of the biggest hits on Thursday, losing almost $16 billion.
On Wednesday, Facebook CFO David Wehner had a sales call with analysts and told them that sales growth may decline as the company prioritizes new formats like Stories and offers users “more choice around privacy.” This call could be the reason so many people decided to back out of their stock on Thursday.
Facebook’s margin fell to 44 percent in the second quarter from 47 percent a year ago as it spent heavily on security and initiatives to convince users the company was protecting their privacy.
Facebook found success in things other than typical social media posting, like adding Stories and video app, Snapchat. But will these two additions be enough?
“The question is will this monetize at the same rate as News Feed,” Sheryl Sandberg, Facebook’s COO, said on the conference call. “And we honestly don’t know.”
