FACEBOOK’S HISTORIC PLUNGE

$120 bn

was the market value wiped out as the firm’s shares fell the most in its history as a public company. It marks the largest loss of value in one day for a US-traded company

On Wednesday, Chief Executive Officer Mark Zuckerberg said in a call with analysts that the company had a “solid quarter”. About 20 minutes later, however, Chief Financial Officer Dave Wehner took people by surprise. He spooked investors, saying the ad revenue growth slowed down more in Europe than anywhere else on the globe. Facebook Inc shares fell as much as 20% in early-morning trade on Thursday after the social-media company showed signs of slowing growth following a data privacy scandal and criticism that hit its earnings outlook

The results followed a period in which data-privacy issues came under harsh scrutiny, with Zuckerberg testifying before US Congress for hours on the company’s missteps

Facebook said the slowdown will come in part from a new approach to privacy and security, but also appeared to acknowledge the limits of growth in advertising, which accounts for virtually all its revenue. Ross Gerber, an analyst, told AFP the latest figures suggest the tide may be turning for Facebook and other social networking firms 1.8 bn daily active users in June. The user base flatlined in the firm’s biggest market, the US and Canada, at 185 million daily, while declining 1% in Europe to 279 million. Overall, average daily users increased 11% from the period a year earlier