Facebook lost $120 bn in market value over slow growth
San Francisco, July 26: Facing global backlash over the massive Cambridge Analytica data scandal, Facebook stock nosedived 20 per cent -- wiping over $120 billion off the company's market value -- after its revenue and user growth in the second quarter of 2018 fell short of investor expectations.
The social media giant late on Wednesday reported 2.23 billion monthly active users (MAUs) -- an increase of 11 per cent (year-over-year) which was its slowest growth in more than two years.
Facebook reported revenue of $13.2 billion -- a gain of 42 per cent but missing analyst expectation of $13.3 billion. It ended the quarter with $42.3 billion in cash and equivalents.
The social media platform earned $5.1 billion, or $1.74 per share, for the second quarter.
"Our community and business continue to grow quickly. We are committed to investing to keep people safe and secure, and to keep building meaningful new ways to help people connect," said CEO Mark Zuckerberg in a statement.
The daily active users (DAUs) were 1.47 billion as of June 30, also an increase of 11 per cent year-over-year.
Analysts attributed the slow user growth to the European privacy law that went into effect on May 25.
Mobile advertising revenue represented approximately 91 per cent of advertising revenue for the second quarter of 2018 -- up from approximately 87 per cent of advertising revenue in the second quarter of 2017.
Facebook currently employs 30,275 people -- an increase of 47 per cent year-over-year.
"We expect revenue growth rates to continue to decelerate in the second half," said David Wehner, Chief Financial Officer.
In April, Facebook had warned investors that more users' data scandals in the future may adversely affect the social networking giant's reputation and brand image.
Appearing before the US Congress, Zuckerberg told the lawmakers that his own personal data was part of 87 million users' that was "improperly shared" with the British political consultancy firm Cambridge Analytica.
After the Cambridge Analytica data scandal, Facebook suspended Boston-based data analytics company Crimson Hexagon over concerns that it harvested users' data.
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No govt protection, claims actress who accused CPI(M)'s Mukesh of sexual abuse
Kochi (PTI): A 51-year-old Malayalam actress who had levelled sexual abuse allegations against several male actors, including CPI(M) MLA M Mukesh, on Friday said she was not keen on pursuing her complaints due to "lack of support and protection from the Kerala government".
The complainant also alleged "carelessness" on the part of the state government and said she was "mentally exhausted" and therefore, not keen on taking the complaints forward.
"I would like to tell everyone that due to the government's carelessness and lack of protection for a woman who has come forward like this, I have suffered more than I can handle. I am mentally exhausted. They are not helping or protecting a woman.
"Therefore, I do not want to pursue the cases. It is not because I have compromised with anyone," she told reporters.
She claimed that she was made an accused in a POCSO case following her complaints against the actors, also including Maniyanpilla Raju and Idavela Babu, and the government did nothing to protect her.
"I am innocent. I want justice. I want the POCSO case against me to be probed thoroughly and quickly. If I commit suicide, the government will be responsible for it," she said.
The Muvattupuzha police had registered the case under the Protection of Children from Sexual Offences (POCSO) Act, against the woman actor based on a complaint lodged by her relative.
According to the police, the incident occurred in 2014. The relative has alleged that she was a minor at the time of the incident and that the actor was running a sex racket.
The actor had vehemently denied the allegations and claimed that the woman relative owed her some money, and these allegations were to shift attention from her complaint against the high-profile actors.
The actress' allegations against the actors came in the wake of the disclosure of the Justice Hema Committee report which revealed instances of harassment and exploitation of women in the Malayalam cinema industry, prompting calls for action against the guilty.
The Justice Hema Committee was constituted by the Kerala government after the 2017 actress assault case.
The complete report was placed before the Kerala High Court which directed that it be handed over to the special investigation team (SIT) that was constituted to probe complaints of sexual abuse in the film industry.
Subsequently, 26 FIRs were registered by the SIT in connection with the revelations in the report.
