META EXPERIENCES THE LOSS THAT IS THE MOST SIGNIFICANT ONE-DAY DECLINE IN U.S. HISTORY BY NFT CRITICS
Meta Platforms, Facebook’s parent company, a well-known social media giant, saw a drop of more than 26% of the shares. The first day of trading after Meta recorded a plunge in profit and users during the last three months of 2021 — and most tellingly, predicted revenue declines in the recent quarter.
26% appears like a mere number, but it surely will blow your mind.
Last summer, when the company was still known as Facebook, the firm became only the fifth U.S. company to reach a market value topping $1 trillion. Still, evidently, Meta’s market value fell more than $230 billion to about $661 billion. The company’s market cap had been $898.5 billion in a day.
Facebook co-founder and Meta CEO Mark Zuckerberg lost nearly $32 billion. Zuckerberg is the most prominent Meta shareholder, with more than 374.8 million shares, or about 12.5% of total shares outstanding, according to S&P Global Market Intelligence.
Zuckerberg, who has been №7 on Bloomberg’s Billionaires, had seen a reduction of $4.9 billion in 2022.
That’s it? Wait for the enormous misery!
Meta reported that Facebook’s daily active users had fallen for the first time: 1.929 billion daily active users compared to 1.93 billion in the previous quarter.
But why?
Zuckerberg said competitors from other social media platforms, including viral video-sharing app Tiktok, is “influencing our business.”
Meta said the augmented and virtual reality business at the heart of its metaverse plans yields revenue but is unprofitable.
However, its metaverse project is in its early stages, and its acquisitions are eating into its profits. Reality Labs, the A.R. and V.R. unit accommodation the Oculus headset that will help anchor the push into the metaverse, generated $877 million in fourth-quarter revenue but lost $3.3 billion.
Meta’s efforts to build more digital realms has been bumpy. It doesn’t do enough to combat misinformation which would eventually create problems that will only grow more complex in the metaverse. Meta shuttered its Diem cryptocurrency project after regulatory pushback. Haha, no wonder The U.S. Federal Trade Commission and multiple states, led by New York, are reportedly investigating potential anti-competitive practices.
Is the stock fall temporary or acceptable? What does the company plan to do? Rebranding doesn’t seem like it worked out. Let’s see what Metal holds for the future.
