Technology ETFs have been the beneficiaries of a NASDAQ that has been on an upswing in 2018, but today, the party came to a temporary halt for those holding Facebook as the social media company disappointed with their earnings report on Wednesday.
Shares of Facebook fell to as low as $174.48 Thursday morning. The stock ended trading Wednesday at $217.50, but now is on pace to have its worst day as a public company after opening 19.6 percent down, missing its second quarter earnings estimates and disappointing investors with its daily active user count.
The issue wasn’t isolated as Facebook’s plunge shaved off $120 billion from its market value, dragging down the rest of the sector with it– the NASDAQ was down 65.6 points as of 11:00 a.m. ET.
While earnings per share were reported on Wednesday at $1.74 versus $1.72 consensus estimates, Facebook stumbled on revenue, reporting $13.23 billion versus an expected $13.36 billion. Meanwhile, global active daily users came in at 1.47 billion while estimates were 1.49 billion.