President Trump has taken a very publicly skeptical view of social media in recent months, and his threats to pressure congressional regulations don’t sit well with Silicon Valley. That coupled with the data mining scandals over that timeframe has investors spooked, and Wall Street has responded with a bit of hedging. The results came to roost this week when Facebook’s share dropped by nearly a quarter on concern that the social media giant’s growth may be plateauing and that its best days are past. Zuckerberg blamed massive investments in security, but that’s a double-edged sword. What remains to be seen is whether the network that ushered in a new era of digital campaign strategy under Barack Obama may already be on the way out the door.
Here’s more from Breitbart…
San Francisco (AFP) – Facebook shares plunged as much as 22 percent Wednesday after the world’s biggest social network reported weaker-than-expected user growth, suggesting a series of scandals on data privacy may impact growth.
Shares tumbled in after-hours exchanges after the disappointing quarterly report brought an abrupt end to Facebook’s run to record highs.
The financial results were close to expectations, but a weak outlook appeared to spook the market. Profit was up 31 percent in the second quarter at $5.1 billion; revenues rose 42 percent to $13.2 billion, slightly below most forecasts.
Chief executive Mark Zuckerberg said the tech giant has been investing heavily in “safety, security and privacy” after being rocked by concerns of manipulation of the platform and the hijacking of user data.
“We’re investing so much in security that it will start to impact our profitability, we’re starting to see that this quarter,” Zuckerberg told a conference call on quarterly results.