Facebook shares plunge 24% as user growth, revenue fall short of estimates

Facebook Inc’s scandals are finally hitting the company where it hurts: growth.

The social media company has contended for years with criticism about its content policies, its failure to safeguard private data and its changing rules for advertisers. Those problems hadn’t mattered to the success of the business -- until now.

Facebook on Wednesday reported second-quarter sales and user growth that fell short of analysts’ projections. And the company told Wall Street the numbers won’t get any better this year.

Shares plunged as much as 24 per cent after Chief Financial Officer David Wehner said revenue growth rates would decline