Facebook (FB) stock crashed in after hours trading Wednesday after the social media giant reported second-quarter revenue and user growth that missed estimates and warned on its earnings call with analysts that revenue growth rates will decline by “high single-digit” percentages in upcoming quarters.
The selloff in extended trading settled at 20 percent, would be the biggest drop ever on a closing basis if sustained Thursday. The Menlo Park, California-based company’s market capitalization is on track to drop by about $126 billion; more than three times the value of Ford Motor Co.
The plummeting stock price wiped out as much as $150 billion in market capitalization and erased the stock’s gains since April when Facebook announced a surprisingly strong 63 percent rise in profit and an increase in users.
Interestingly, before the extended trading selloff, Facebook stock hit a record high in early afternoon trading Wednesday, ahead of the company’s second-quarter earnings. The stock was up 1.6% to $218.21 at 12:56 p.m. Eastern Time after closing at $214.67 Tuesday.