It has turned into a brutal reality check for Facebook.
The social network star — which has weathered storms over privacy and data protection — is now looking at cooler growth following a years-long breakneck pace.
Shares in Facebook plummeted 19 percent to close at $176.26 Thursday, wiping out some $100 billion — believed to be the worst single-day evaporation of market value for any company.
The plunge came one day after the firm missed revenue forecasts for the second quarter and warned that growth would be far weaker than previously estimated.
Chief financial officer David Wehner warned Wednesday in an earnings call with analysts that revenue growth had already “decelerated” in the second quarter and would drop “by high single-digit percentages” in coming quarters.
At one point during the call, Facebook shares were trading down as much as 24 per cent, an unprecedented drop for a large firm.
On the call, Jefferies & Co. analyst Brent Thill said that “many…
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