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Facebook loses 20% of its market value after catastrophic financial results

Facebook has recorded the biggest fall in value in the corporate history, which was after the stock plunged by 20%. This drop came after Facebook revealed modest financial results in the second quarter of 2018. This led to the loss of $120 billion of its market value.

The negative stock reaction came after Facebook warned that it is expecting weaker growth in the following months, as it confirms it will spend a lot of money to improve Facebook reputation and address the users’ concerns after the Cambridge Analytica scandal.

Facebook also said it had 2.23 billion active users, up 11% on the same period in 2017, marking the slowest growth in Facebook history too. The company said it expects that the slower user growth would continue, due to the same mentioned reasons of the data privacy scandals and Facebook reputation.

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