Samsung says the Galaxy S9 isn’t selling very well

Samsung Electronics’ quarterly earnings are in, and as ever they’re right in line with guidance, meaning that the company’s run of record profits is at an end. Samsung made an operating profit of 14.87 trillion won ($13.3 billion) on sales of 58.4 trillion won ($52.1 billion); revenue was down 4 percent year on year.

According to Samsung, the drop in revenue can be put down to “softer sales of smartphones and display panels.” The company’s most important phone of the year, the Galaxy S9, went on sale at the end of the previous quarter, but Samsung describes its performance as “slow.” Earlier this month analysts predicted that it would be the worst-selling Galaxy S flagship phone since 2012’s Galaxy S3.

Samsung’s display business also had a rough quarter, with “weak demand” for flexible OLED panels as seen in products like the iPhone X, and LCD shipments falling in both price and quantity. The company does expect OLED demand to pick up in the second half of the year, and Apple’s reported plan to launch two new OLED iPhone models will likely help with that.

Bright spots include the TV division’s strong sales of premium models thanks to the World Cup, while Samsung’s major profit driver remains its semiconductor division — demand for NAND flash memory and DRAM chips isn’t going away any time soon. Samsung also says its image sensor business is growing due to Chinese companies using the chips in dual-camera smartphones.

Facebook’s stock market decline is the largest one-day drop in US history

After a surprisingly weak growth forecast in this week’s earnings report, Facebook’s stock price dropped 19 percent today. The decline, which erased about $120 billion in market value, is the largest one-day drop in the history of the American stock market.

Facebook shares fell as much as 23 percent in after-hours trading Wednesday, when Facebook reported its second quarter earnings. While revenue increased 42 percent in the quarter, it still missed analysts’ projections.

More worrisome were the number of daily active users, which grew by just 22 million — the lowest such number since at least 2011. Facebook’s chief financial officer warned that revenue growth would “decline by high single-digit percentages” for the rest of the year.

Facebook’s decline significantly outpaced the $91 billion that Intel lost in September of 2000, during the original dot-com bust. Microsoft lost $77 billion in a day during the dot-com bust, according to Bloomberg.

Facebook has faced a series of crises over the past two years, starting with Russian interference on the platform during the 2016 election and continuing with this year’s Cambridge Analytica data privacy scandal. The introduction of the General Data Protection Regulation in Europe cost the company 1 million users after it rolled out, Facebook said.

In response to concerns over privacy, fake news, and hate speech, Facebook vowed to hire 20,000 new employees to work on security and moderation issues. That has cut into Facebook’s revenue growth at the same time that it has saturated its core North American market. Facebook has remained at 185 million users in the United States and Canada for the past two quarters, forcing it to look for growth elsewhere.

Spectrum internet is getting kicked out of New York

New York is officially kicking internet and cable provider Spectrum, aka Charter, out of the state after the company failed to deliver on its fast internet promises. The state required Spectrum to roll out high-speed internet across underserved rural areas when it merged with Time Warner Cable in 2016.

The company failed to do so after two years, and now the state is not only forcing the company to cease operations by revoking its approval of the 2016 merger (the approval was contingent on Charter expanding the Spectrum network), but is also seeking $3 million in penalties. Spectrum has to keep operating, uninterrupted, for 60 days while the state finds a new internet provider to service customers. It’s unclear what Spectrum is planning to do now, but the state is asking it to come up with a transition plan.

The company issued a statement to The Verge and said it has “extended the reach of our advanced broadband network to more than 86,000 New York homes and businesses” since the merger. New York expected the company to expand access to an additional 145,000 homes and businesses.

New York State Public Service Commission chair John B. Rhodes said in a statement: “Charter’s non-compliance and brazenly disrespectful behavior toward New York State and its customers necessitates the actions taken today seeking court-ordered penalties for its failures, and revoking the Charter merger approval.”