The Upside Down

25 July 2018 By Jennifer Saba Follow @jennifersaba

The social network’s stock closed at a new top on Wednesday, valuing it at $630 bln. Then came a sharp after-hours slide following earnings. Fake-news scandals, potential regulation and Mark Zuckerberg’s tin ear all raise big questions. The news feed could get a lot worse.

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Facebook on July 25 reported second-quarter revenue rose 42 percent year-over-year to $13.2 billion. Net income was $5.1 billion, or $1.74 per share, versus $3.9 billion, or $1.32 per share, in the same period a year ago.

Daily active users were 1.5 billion in June, up 11 percent from a year earlier.

In a conference call following the release of the earnings report, Facebook Chief Financial Officer David Wehner said he expected the company’s revenue growth rates to decline by high single-digit percentages from prior quarters sequentially in both the third and fourth quarters of this year.

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