After a surprisingly weak growth forecast in this week’s earnings report, Facebook’s stock price dropped 19 percent today. The decline, which erased about $120 billion in market value, is the largest one-day drop in the history of the American stock market.
Facebook shares fell as much as 23 percent in after-hours trading Wednesday, when Facebook reported its second quarter earnings. While revenue increased 42 percent in the quarter, it still missed analysts’ projections.
More worrisome were the number of daily active users, which grew by just 22 million — the lowest such number since at least 2011. Facebook’s chief financial officer warned that revenue growth would “decline by high single-digit percentages” for the rest of the year.
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