Facebook loses $130 bn in just two hour, Zuckerberg $17 bn

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Facebook's Seattle engineering center.

What's more, Zuckerberg warned that the company would continue to make investments going forward, not only in safety and security measures to prevent things like the Russian disinformation campaign seen in the 2016 election, but also in new products and services.

More disconcertingly for analysts and investors, though, company officials warned on the call that its annual growth rate would decline by the high single digits, percentage wise, in the second half of the year.

The company reported its second-quarter earnings after the bell on Wednesday. When UK regulators issued the largest fine they could against the company as punishment for the Cambridge Analytica data scandal, the tab amounted to £500,000 ($655,000), chump change for a company that brings in $40 billion a year.

Similarly, the number of daily active users on the platform - an important metric for judging the success of a website or app - only grew by 22 million, the lowest growth figure since 2011.

Of 47 analysts covering Facebook, 43 still rate the stock as "buy", two rate it "hold" and only two rate it "sell".

That "bombshell", as one analyst termed it, played into concerns on Wall Street that Facebook's model could be under threat after a year that has been dominated by efforts to head off concerns over privacy and its role in global news flow.

The problem: weaker-than-expected revenue growth, Facebook's first such miss since 2015. Monthly active users rose 11 percent to 2.23 billion - below most estimates of 2.25 billion.

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According to the company, Facebook Messenger and WhatsApp show promise as new advertising platforms, although chief operating officer Sheryl Sandberg doesn't believe they'll contribute strongly for a few years yet.

Wednesday proved a torrid time for Facebook founder Mark Zuckerberg, who faced a bid to topple him as chairman by shareholder Trillium Asset Management, Business Insider reported.

It's a staggering drop-off for Facebook and flies in the face of Wall Street's expectations. BMO Capital raised its expectation to $2,250 per share from $2,000.

"Facebook was valuable when you could go there and pick and choose the type of content that you wanted to see".

On Thursday afternoon, Facebook watched its capitalization drop by $119 billion, lowering its valuation to $510 billion, which represents a 19 percent drop, according to CNBC.

European advertising revenue growth in Europe "decelerated more quickly than other regions", partially because of the new European privacy laws, Wehner said.

Some investors were also dismayed with Facebook's revelation about Instagram Stories, which allow users to post videos or photos that disappear after a day.