The company's S-1 lays the groundwork for what is widely expected to be one of the largest initial public offerings of the year, second only to Uber's IPO in May. It's also...Technologyread more
Fraud investigator Harry Markopolos' accusations extended beyond GE's management to actuaries, auditors and analysts who he claims overlooked billions in liabilities.Marketsread more
Trump's tweet comes a day after Apple put out a press release describing the money it spends on U.S.-based suppliers and vendors.Technologyread more
CNBC combed through Wall Street research to see which stocks are still a buy after their earnings reports.Marketsread more
President Donald Trump held a call on Wednesday with the CEOs of three major U.S. banks, according to people with knowledge of the situation.Marketsread more
Despite aggressive strides, Waymo needs one thing before their self-driving cars become a seriously useful transportation system: people. We talked to the ones closest to it.Technologyread more
Scientists say the smoke plumes, filled with megatons of tiny, harmful particles, could travel to other areas of the world and cause serious respiratory problems for people.Weather & Natural Disastersread more
Some Weight Watchers loyalists applaud Kurbo by WW. But nutritionists worry Kurbo promotes an unhealthy relationship with food during an especially impressionable time.Health and Scienceread more
Benefits from what President Trump called "the biggest reform of all time" to the tax code have dwindled to a faint breeze just 20 months after its enactment, writes John...Politicsread more
Epstein, 66, was found in his cell in Manhattan federal lockup Saturday morning and transferred to a nearby hospital, where he was subsequently pronounced dead.Politicsread more
Air travelers faced delays at U.S. airports on Friday afternoon after a computer issue snarled processing of international arrivals.Airlinesread more
Then the company's executives kicked off the earnings call with analysts.
By the end of the call, the stock had plunged as much as 25 percent before settling with a drop of 20 percent, wiping more than $120 billion off the company's market value.
Several comments spooked investors, but the big one was a concrete prediction from CFO David Wehner that operating margins would decline to the "mid-30s" as the company broadened its markets, invested in new products and poured money into safety and security improvements. Those moves are expensive but the company sees them as important for the long-term health of the platform.
Execs also warned that Facebook's revenue growth rates will decline in the "high single digits" during the second half of the year.
This isn't the first time Facebook's stock has moved dramatically following executive statements on an earnings call. In contrast with most earnings calls, which are dull and have no impact on the share price, Facebook's tend to contain actual information, often geared toward curbing investor enthusiasm.
The trend was reversed in the fourth quarter of 2017, however.
Facebook's stock tanked when the earnings press release noted that the company had shown fewer viral videos, reducing the amount of time people spent on the site by an average of 50 million hours a day. During the call, executives said that the average price per ad increased 43 percent, suggesting that Facebook's pricing power remained strong because advertisers had few places to turn. The stock price whipsawed back into positive territory.