Mark Zuckerberg faces investors' heat after Facebook's historic stock loss

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"The bundling of consent for Facebook to use consumer data with access to the platform appears to be an aggressive interpretation of GDPR, and one that might be more subject to eventual regulatory action", Wieser said.

The 19 percent drop vaporized $119 billion of the company's stock-market value; CEO Mark Zuckerberg saw his net worth fall by roughly $16 billion as a result.

The site also brought in 1.47 billion global daily active users (DAUs) during its second quarter, below the 1.49 billion that analysts were projecting, according to a StreetAccount and FactSet outlook.

Facebook's second-quarter results were the first sign that a new European privacy law and a string of privacy scandals involving Cambridge Analytica and other app developers are hitting the company's business.

Facebook itself could be set for its worst day in six years as a public company as its stock dipped 20.4 percent to $173.20 in premarket trading.

The company warned its investors that a huge financial injection would be required to buttress the business to address the controversies it's now facing, with revenue growth expected "to decline by high single-digit percentages from prior quarters". Facebook's shares had gained more than 10 percent over the last month and closed higher at $217.50 on Wednesday, before the company reported earnings. That $120 billion plunge is the biggest-ever one-day loss in dollar value for a U.S. company. "We're starting to see that this quarter", he said.

That could be down to the drop being a one-off, potentially following the Cambridge Analytica data sharing scandal, or even the sharing of private posts belonging to some 14 million Facebook users, rather than a downward spiral for Facebook.

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"People that believes in God, people that believes in our Constitution, people that even creates patriotic songs - they want to get rid of that stuff".

Ben Bajarin, an analyst at Creative Strategies, calls this "new territory" for Facebook.

According to Facebook CEO Mark Zuckerberg, the implementation of the EU's General Data Protection Regulation (GDPR) is to be blamed.

Thoughts? Let us know what you think in the comments section below and stay tuned.

Facebook shares have been in the tank since the company released its earnings Wednesday afternoon.

Wehner gave three different reasons why the company's revenue growth would decline: currency headwinds, greater investments in new kinds of content-sharing, like disappearing videos, and greater user control over privacy - a direct response to criticism the company has fielded. Mobile advertising revenue is also up, and now represents 91% of advertising revenue for the second quarter of 2018, which is up from approximately 87% of advertising revenue in the second quarter of 2017.

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