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IPFS News Link • Business/ Commerce

Facebook 'puts privacy first' and stock plunges 20%

• by Seth Fiegerman

Wall Street's sharp reaction followed an earnings report that showed slower than expected growth in user numbers and ad revenue. Overall revenue hit $13.2 billion for the quarter, up 42% from the same period a year prior but below Wall Street estimates. The stock rebounded slightly as the evening wore on, but the news clearly spooked investors.

The earnings report offered the clearest glimpse yet into how the Cambridge Analytica debacle impacted the business. News that the data firm accessed information from as many as 87 million Facebook (FB) users without their permission broke in the final weeks of the first quarter.

Wednesday's rare moment of weakness came as investors watch the company closely for signs of lingering damage after months of bad press, user outrage and regulatory scrutiny.

During a conference call with analysts, Facebook CFO David Wehner said sales growth may decline as the company prioritizes new formats like Stories and offers users "more