Facebook saw as much as $150B wiped from its value in after-market trading saw the share price fall by 25%. This followed the company warning that its profit margin is likely to fall from its current 44% to the mids-30s for more than two years …
Part of the reason for that is gradually slowing growth in ad revenue, reports Reuters, but privacy is also a key factor.
Privacy issues have also reduced ad revenue.
Facebook had cautioned investors to expect a big jump in second-quarter costs because of efforts to address concerns about poor handling of users’ privacy and to better monitor what users post. Total expenses in the second quarter surged to $7.4 billion, up 50 percent compared with a year ago.
Photo: Chris Ratcliffe/Bloomberg
