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.
Related: Tom Lydon Talks Tech, EM, Facebook on Fox Business
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.