…for the first time in three years, Facebook failed to meet Wall Street’s expectations for revenue and user growth. The company’s user base of 185 million users in the United States and Canada remained flat over the last quarter, and added just 22 million users worldwide — the lowest number of additions since at least 2011.
Is it the beginning of the end for Facebook? Perhaps. Unlikely.
It was enough to spook investors though. Facebook stock dropped almost 20% in the day of trading following the announcement. That equates to US$119b in the single greatest loss in US trading history.
BREAKING: Facebook stock collapse wipes out $119 billion in market value, one of the worst single-day losses in history.
— The Associated Press (@AP) July 26, 2018
On the extreme flip-side, Amazon is rapidly approaching a $1 trillion valuation.
Amazon reported earnings for the second quarter of 2018 today, posting an even higher profit than Wall Street analysts estimated thanks in large part to boosts in North American operating income, its highly profitable cloud computing business, and booming sales in its growing ad division.
Amazon reported earnings of US$5.07 per share, which was doubled the estimated amount and resulted in a paltry US$2.5b in profit – a 1200% increase of the same quarter the year before!