Facebook stock plummeted by more than 18 percent at the start of trading Thursday, erasing over $110 billion from the social media giant’s market value in a matter of minutes.
The collapse in the shares of one of the largest publicly traded U.S. companies came a day after Facebook reported disappointing second-quarter earnings.
Of particular concern to investors was the company’s warning that revenue growth rates would continue to slow sharply in the coming quarters.
“Management commentary about decelerating topline growth during a quarter where the company fell short of ad revenue for the first time is what has led to the stock’s after-hours performance,” Goldman Sachs analysts wrote in a note to clients, referring to the initial market reaction to the earnings report Wednesday.
Facebook has been one of the most influential stocks in recent years, and the broader market also declined in early trading Thursday, eroding some of the previous day’s gains. Those gains were tied to what appeared to be an easing of trade tensions between United States and the European Union.