The social-media behemoth’s stock lost roughly one-fifth of its value in the extended session Wednesday after its earnings report missed expectations on revenue and showed slowing user growth. Weak guidance also rattled investors.

Facebook stock dropped about 7 percent immediately after the earnings report was released, then plummeted to a loss of more than 21 percent as a conference call with analysts progressed. Close to 34 million shares changed hands in the extended session, well above the average volume of 17 million shares for a regular trading session over the past month. Should the losses hold into Thursday’s regular session, Facebook would lose more than $100 billion in market capitalization and lose the stock’s gains for the year thus far, according to marketwatch.com

“The guidance, it’s nightmare guidance,” GBH Insights head of technology research Daniel Ives said. “If you look at their forecast for the second half of the year in terms of user growth, and the expense profile, it refuels the fundamental worries about Facebook post-Cambridge Analytica.”

The Menlo Park, Calif.-based company reported $5.12 billion in net income for the quarter, which amounts to $1.74 a share, up from $3.89 billion or $1.32 a share in the year-ago period. The bottom-line beat was above analysts’ average estimates of $1.71 a share.

Profits were not what rattled investors, though. Facebook recorded sales of $13.04 billion, a 41.9% increase from a year ago, but that was lower than analyst estimates and previous growth rates. User growth was flat in the U.S. and Canada, and declined in Europe from the previous quarter.

 

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