Meta shares crash: The social media company’s stock fell 26 percent on Thursday after Facebook-owned Meta issued a weak forecast, prompting the company’s founder and CEO Mark Zuckerberg. ) net worth decreased by $29 billion. The fall in Meta stock resulted in a $200 billion loss in its market value, the biggest drop in the market value of any US company.
Meta Blames Apple Inc’s Privacy and Competition
The company has attributed this to the changes made in the privacy of Apple Inc. and increased competition. This also showed pressure on the Nasdaq Composite Index. According to an analysis of Refinitiv data by Reuters, this is the biggest drop in the market value of a US-based public company. This is the biggest single day loss for the company since its Wall Street debut in 2012.
“Mark Zuckerberg’s Metaverse bubble has burst with fourth-quarter results,” said Laura Ho, an equity analyst at Hargreaves Lansdowne.
Jio Platforms announces investment of $15 million in Pranav Mistry’s Two Platforms
Nasdaq lost 9% in January
Big US tech companies remain in the headlines for increasing pressure in 2022, as investors anticipate tougher policy by the US Federal Reserve. This is expected to reduce their valuation. The Nasdaq, which is dominated by tech and other growth stocks, saw a 9 per cent fall in January, the biggest monthly decline since the coronavirus-induced fall in March 2020.
The decline in outlook surprised the market
“The fall in earnings outlook by Meta and other companies has surprised the market,” said Kenne Brocks, a strategist at Societe Generali in London. “Most equity markets were under pressure this morning due to heavy selling in tech companies and we could see significant volatility ahead as the Fed prepares to hike interest rates,” he said.
Zerodha cofounder: What Nikhil Kamat said on the historic fall of Meta stock
After the market closed, social media platforms Pinterest and Snap posted good quarterly results, which is expected to boost their stocks.
Many funds sold
Several investor groups, including hedge funds, had stakes in Meta, although many have exited it following the recent decline. Other institutional investors also have a major stake in the company. The stock is also very popular among retail investors, who are very enthusiastic about buying in the fall.
Opportunities seen by some portfolio managers
Some portfolio managers also saw reason to buy into it. David Jeffries, portfolio manager at LaFerr Tangler Investments, said the company is looking to increase its stake in Meta as the stock declined.
,