This drop wipes out $100 billion from the company's market cap, according to Birinyi Associates.
All of this was enough to spook investors in the shares on the Nasdaq when the market opened on Thursday morning. A few analysts tempered their outlook Thursday.
The financial blow is a shock, but it may not be the most concerning part for Facebook in the long run. The last time the company missed revenue estimates was the first quarter of 2015.
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Facebook has also been sucked into the probe into alleged Russian meddling in the 2016 presidential election. Misinformation on WhatsApp contributing to mob killings in India have added to the pressure on Facebook to re-evaluate how its services maintain security and decorum. Its $1.74 earnings per share beat expectations of $1.72. "In the USA and Canada, Facebook's daily active users remained flat sequentially at 185 million, while the number actually fell in Europe, falling to 279 million, down from 282 million", writes Fox News. Overall, average daily users increased 11 percent from the period a year earlier.
Nearly all of Facebook's revenue - $13 billion of the total $13.2 billion - came from online advertising, a sector dominated by the California social network along with Silicon Valley rival Google. Analysts were expecting 2.25 billion, according to FactSet. The company remains in a dominant position in mobile advertising alongside Alphabet Inc.'s Google. It also said growth in user numbers would slow down. When UK regulators issued the largest fine they could against the company as punishment for the Cambridge Analytica data scandal, the tab amounted to £500,000 ($655,000), chump change for a company that brings in $40 billion a year.
"This is a direct result of scale as it becomes increasingly hard to grow at such high rates when a company hits this size", Windsor wrote. The Stories format is showing promise, and Facebook still has strong monetization potential across several areas, like IGTV - where it hasn't even really started yet. The company may have halted more ad purchases than expected as it applied a broad definition of what's considered "political".
One bright spot for Facebook has been Instagram, the photo-sharing app it bought for $1 billion in 2012. "It's still going to be a key player in tech, but not growing as fast as it used to". The company doesn't break out Instagram's revenue.
And in the view of BTIG analyst Rich Greenfield, Facebook is making an investment that will pay off down the road. Its stock was trading at $176.26 late Thursday, down from $217.50 a share before the report was released.
The revenue guidance from the company was "unprecedented", said Gene Munster, an analyst at Loup Ventures, in a note to investors. Those European privacy regulations, known as the General Data Privacy Regulation, or GDPR, went into effect with just one month left in the second quarter. But once Wehner revealed the slow future revenue growth expectations, the stock fell further.