Jul 26, 2018 (LBO) – Facebook Inc’s stock was down by nearly 24 percent, Wednesday following concerns voiced over the last few months on social websites privacy issues, a foreign media reports said. .
“There would be a rise in costs because in cost on efforts to address concerns about poor handling of users’ privacy and to better monitor what users post,” the company was quoted as warning investors.
Total expenses in the second quarter surged to US 7.4 billion dollars, up 50 percent compared with a year ago.
Facebook’s operating margin fell to 44 percent in the second quarter from 47 percent a year ago.
The new General Data Protection Regulation (GDPR) in the European Union forced several changes to Facebook’s privacy terms and sign-up process.
A data privacy scandal involving the political consulting firm Cambridge Analytica and misinformation on WhatsApp contributing to mob killings in India have added to the pressure on Facebook to re-evaluate how its services maintain security and decorum.
Facebook’s revenue grew at its slowest pace in almost three years. Sales grew 14 percent to US 13.2 billion dollars in the second quarter compared with US 9.3 billion dollars a year ago, the report added.
Daily user growth for Facebook’s namesake service has slid in six straight quarters, bringing it to 1.47 billion users in the second quarter from 1.23 billion at the end of 2016 when it became embroiled in political issues.