Facebook’s second-quarter results revealed that it is no longer growing in the U.S. and Canada, its most valuable geographic region; shares dropped nearly 20 percent in after-hours trading and will likely fall this morning when the market opens. The social media giant added just 22 million new daily active users worldwide, its lowest increase since at least early 2011. Facebook has been hampered by scandal after scandal for the past 18 months, but until now, it hasn’t seen an impact on user growth or revenue. [Kurt Wagner / Recode]
Recode Daily: Facebook shares dropped more than 20 percent after it warned growth would slow
Plus, a federal judge’s ruling could bring unprecedented scrutiny onto Trump’s foreign businesses; rechargeable electric skates are headed to a sidewalk near you; Drone Photography of the Year contest winners.
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Meanwhile, the Chinese government has withdrawn its approval for Facebook’s new subsidiary in the country; Facebook has been blocked in China for almost a decade and the company has long sought to establish a foothold there. [Paul Mozer / New York Times]
More tech earnings ahead this week and next: Amazon, Spotify and Intel report today; we’ll hear from Twitter on Friday, and Apple on Tuesday. Amazon is expected to show 40 percent year-over-year sales growth. And while Spotify tried to revolutionize how private startups go public with its not-so-normal direct listing — including the potential for volatility — the company’s performance looks, well, pretty much normal. [Teddy Schleifer / Recode]
A U.S. judge rejected an effort by President Trump’s lawyers to stop a lawsuit that alleges Trump is violating the Constitution by continuing to do business with foreign governments. If it stands, the judge’s ruling on “emoluments clauses” could bring unprecedented scrutiny onto Trump’s businesses, which have sought to keep their transactions with foreign states private. [Ann E. Marimow, Jonathan O’Connell and David A. Fahrenthold / The Washington Post]
Scoot over, scooters and bikes — electric skates are ready for their moment on the sidewalk. Segway has launched rechargeable roller shoes called Drift W1s, which cost $399 and can hit a top speed of 7.5 miles per hour; a ride can last 45 minutes before the smartphone-controlled skates need another charge. They’ll be available in August, and the company is throwing in a helmet for free with purchase. [Chavie Lieber / Racked]
Meanwhile, Waymo, Google’s self-driving-car spinoff, has partnered with Walmart, Avis and AutoNation in a trial program to offer free short rides in the Phoenix area to customers who use their services. [Makena Kelly / The Verge]
Here’s a kind of hilarious look inside the big business of being Gwyneth Paltrow, whose $250 million media and e-commerce business, Goop, is the most controversial brand in the wellness industry. Goop’s affordable luxury ethic: Having beautiful things sometimes costs money, and finding beautiful things is sometimes a result of an immense privilege, but a lack of that privilege doesn’t mean you shouldn’t have those things. Also: The weirder, the better. [Taffy Brodesser-Akner / New York Times Magazine]
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