On Wednesday 25 July, Facebook, the Menlo Park, California based social network, released its Q2 reports which saw the company’s stocks drop in value by 20%.
The Q2 results could stem from March’s Cambridge Analytica scandal, during which it was revealed that the social media giant had been collecting personal information on its expansive user base.
Yet, despite the disappointing results, Facebook’s overall active user base has grown, hitting 2.23 billion. This has allowed the company to retain some stability in light of recent events, and achieve an increased average revenue per user income.
However, the European user base has in fact dropped, with investors speculating whether this is a result of Europe’s increased data protection laws, such as the new GDPR regulations, or simply the ‘social-network’ impact of disenfranchised users leaving the site.
On the whole, whilst user increases are positive, they still fall short of the expected 2.25 billion that was initially predicted.