NEW YORK, July 26 — Facebook shares dived nearly 20 per cent early today after it signalled it expects weaker growth, pushing the Nasdaq decisively lower.
About 25 minutes into trading, the tech-rich Nasdaq Composite Index was at 7,840.20, down 1.2 per cent, falling from yesterday’s record close.
The Dow Jones Industrial Average rose 0.6 per cent to 25,572.77, while the broad-based S&P 500 dipped 0.3 per cent to 2,838.03.
The Facebook results shifted the market’s attention from yesterday’s pledge by President Donald Trump and European Commission chief Jean-Claude Juncker on trade that had boosted markets.
Investors fled Facebook after the social network reportedly sharply higher profit and revenue, but signalled it expects slower user growth, partly due to the effect of data privacy scandals.
Facebook chief executive Mark Zuckerberg also cautioned that profitability would be hit by additional spending to secure the network.
Other technology companies retreated, including Google parent Alphabet, Netflix and Amazon, which is scheduled to report results after the market closes Thursday.
Facebook was not the only company to fall after results. Ford sank 4.1 per cent and Mattel shed 4.4 per cent, while American Airlines climbed 3.7 per cent.
In other developments, computer chip company Qualcomm advanced 4.5 per cent as it dropped a US$43 billion bid to acquire Dutch rival NXP today after failing to win approval from antitrust authorities in China.
US shares of NXP fell 5.6 per cent. — AFP
Source: The Malay Mail Online