Mark Zuckerberg could certainly use an asbestos suit.
Facebook shares were torched in after-hours trading on Wednesday, tumbling more than 20 percent after the social network revealed fewer daily and monthly users than expected in the second quarter — and forecast 2018 growth much lower than Wall Street forecast.
The sell-off wiped out nearly $150 billion from Facebook’s market cap and, faster than you can say, “Move fast and break things,” erased roughly $20 billion from the tech mogul’s wealth.
Also, the stock decline wiped out all of Facebook’s growth this year.
The Palo Alto, Calif., company reported revenue of $13.23 billion, up 42 percent year over year — but just short of analysts’ expectations of $13.3 billion.
“We expect our revenue growth rates to decline by high single digit percentages from prior quarters sequentially in both Q3 and Q4,” Chief Financial Officer David Wehner said.
Facebook’s 2.23 billion monthly active users and 1.47 billion daily active users were both up 11 percent from last year but also just shy of analyst predictions of 2.25 billion and 1.48 billion, respectively.
The lower-than-expected users and revenue shows that Chief Executive Zuckerberg’s cash-producing machine may not be totally impervious to controversy.