![]() Zuckerberg said his company aimed to hire 20,000 people by the end of the year to boost its security and help review suspect content on the site. Facebook has also been under investigation by the FBI, the Department of Justice and the Securities and Exchange Commission. Zuckerberg was hauled before Congress to answer questions about the data breach scandal, in which information from 87m user profiles, the majority based in the US, was harvested for use by Cambridge Analytica in targeted political advertising. “Our sophistication in handling these threats is growing and improving quickly.” “We were too slow to spot and respond to Russian interference, and we’re working hard to get better,” Zuckerberg said in testimony to the House energy and commerce committee in April. He told investors to expect a big jump in costs related to its efforts to improve data handling and an advertising drive to reassure users.Ĭosts in the latest quarter rose by 50% to $7.4bn as the company spent vast sums on improving data security and increased policing of the site after Zuckerberg admitted to Congress that Facebook had been too slow to react to Russian meddling in the run-up to the 2016 presidential election. “Looking beyond 2018, we anticipate that total expense growth will exceed revenue growth in 2019.” “Our total revenue growth rates will continue to decelerate in the second half of 2018, and we expect our revenue growth rates to decline by high single-digit percentages from prior quarters sequentially in both Q3 and Q4,” he said. The collapse came after the company told investors to expect a significant decline in growth rate, and revealed that the number of users in Europe had fallen from 282 million to 279 million.ĭavid Wehner, Facebook’s chief financial officer, said on Wednesday that the company’s decision to give its users “more choices around data privacy” following the Cambridge Analytica scandal “may have an impact on our revenue growth”. The single biggest loser is Zuckerberg, who owns nearly 17% of the company and whose paper fortune fell from $86.5bn to about $70bn, sending him tumbling from the third-richest person on the planet to the sixth. The amount of money wiped off Facebook’s market value on Thursday is equivalent to nearly the whole of McDonald’s. The previous biggest collapse came in 2000, when Intel lost $91bn in a day. Shares fell to $176, valuing the company at $510bn, a drop of $119bn from a record high of nearly $630bn on Wednesday. The collapse of Facebook’s share price is the biggest ever one-day drop in a company’s market value.
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