• Tuesday, October 23, 2018
  • 79°

Sports Breaking

Facebook reports slower-than-expected 2Q revenue growth

  • Wall Street rose on Wednesday. Tech stocks soared, and President Donald Trump reportedly secured concessions from the EU on trade.
    Reuters
  • ASSOCIATED PRESS

    Facebook CEO Mark Zuckerberg makes the keynote speech at F8, theFacebook’s developer conference on May 1 in San Jose, Calif.

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NEW YORK >> Facebook’s user base and revenue grew more slowly than expected in the second quarter as the company grappled with privacy issues, sending its stock tumbling after hours.

While it was the company’s first full quarter following the Cambridge Analytica privacy scandal, analysts attributed the user growth shortfall largely to European privacy rules that went into effect in May.

Facebook had 2.23 billion monthly users as of June 30, up 11 percent from a year earlier. Analysts were expecting 2.25 billion, according to FactSet.

The company earned $5.1 billion, or $1.74 per share, up 31 percent and above analysts’ estimates of $1.71.

But revenue — up 42 percent to $13.23 billion— was slightly below the $13.34 that Wall Street was expecting.

Facebook’s shares fell 7.6 percent after-hours after closing at $217.50.

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