Last August, I wrote an article when the Cambridge Analytical scandal hit Facebook causing the share price of the company to plunge by 18.96% in one day – wiping off $120 billion in market value.
Could it get any worse?
During Facebook’s Q2 2018 earnings call, CFO David Wehner told investors to expect revenue growth to decelerate further by high-single digits for the next two quarters. Operating margins decreased by three percentage points from the previous quarter to 44%. The margin compression was largely due to Facebook’s investment to beef up security on their social media platforms and build a team to combat fake news.
But that’s not the end of it!
A month later, in September 2018, Facebook reported an attack on its computer network that exposed the personal information of nearly 50 million users. Coupled with the negative sentiment in the market, the share price of Facebook