Business
Meta Loses $238 Billion As Facebook Starts Losing Users
Facebook parent company Meta lost $238 billion in market cap yesterday as Facebook stocks fell by more than 26%. Meta’s loss became the biggest single-day drop in value for the US stock market.
RELATED: Facebook Losing Users, Stocks Plummet by 20%
Meta’s $238 Billion Loss Highest In a Single Day
Facebook parent Meta lost more than $238 billion in market capitalization last Thursday. This is the US stock market’s largest drop in value for a single day.
Previously, Apple held the record at $182 billion when its stocks crashed heavily in September 2020.
In fact, the seven biggest drops in value happened in the last two years and involved tech companies. These are Apple, Microsoft, Tesla, and Amazon.
It coincided with the period where these companies also rose in value astronomically. Prior to 2020, Facebook also held the record at $119 billion in 2018. At that time, the company also announced forecast revenue below analyst estimates.
Facebook Announced It Lost Users Between 3rd and 4th Quarter
The social platform gave a dismal forecast last Wednesday. It also reported that for the first time in its18-year history. Specifically, Facebook lost a significant number of daily active users.
The company said it lost half a million daily active users in the last three months of 2021. Numbers fell from 1.93 billion daily log-ins to 1.929 billion.
However, the number of monthly users stayed flat at 2.91 billion. Growth across Meta’s other platforms such as WhatsApp, Messenger, and Instagram remained modest.
In addition, Facebook blamed Apple for its loss. The makers of the iPhone began implementing stricter privacy policies on user data. It also acknowledged the threat coming from short-form video platforms such as TikTok and YouTube.
CEO Mark Zuckerberg admitted that Facebook never dealt with a major rival during its previous strategy shifts.
Meta’s Investment in the Metaverse
Meanwhile, Meta’s drop in value comes as it prepares to shift its focus beyond its current businesses. Meta wants to focus on the metaverse, a virtual world that represents the next step in social platforms.
In the metaverse, users appear as cartoon forms of themselves. They can visit other metacharacters and attend virtual events sponsored by real-life companies.
However, the development of the metaverse is still a long way off. And can consume a lot of resources along the way. Zuckerberg announced that Meta posted a net loss of $10 billion in 2021. This is attributable to Meta’s investment in the metaverse.
Zuckerberg’s Net Value Drops As Well
Meanwhile, CEO Mark Zuckerberg also saw his personal net worth drop nearly $30 billion the same time Meta shares tanked.
His net worth is now $84.3 billion, according to Forbes. The loss also meant that the 37-year old billionaire won’t be among the top ten richest people since 2015.
Watch the Arirang News video reporting that Meta shares plunge 26% overnight, wiping out US$ 230 billion:
Loading ...What do you think of Facebook’s single-day record loss of $238 billion? Is this the start of a downward trend for the social media giant? Or, will it rebound nicely once something good comes up?
Tell us what you think. Share your thoughts below.
8 Comments
Facebook steals private data from its own users and then censors content that Americans want to see. I deleted my account for these 2 reasons. Goodbye FB.
I can proudly say I’ve never had a FB account nor have my kids. My wife finally got off of that communist platform and she is glad of it. I hope it goes the way of dial up internet.
They DO NOT UNDERSTAND what the first amendment is all about . I hope the socialist Facebook COME TO ITS SENSES . Or DISAPPEARS.
Zuckerberg is a VERY BAD MAN who totally supports anything and everything that his Communist Liberal Democrat party friends and the Cabal desire, want and need in order to destroy America and it’s freedom of it’s freedoms. This BAD MAN has shown all of the world now just exactly what a restrictive and censoring platform he runs by the theft of private data and then censoring contents, opinions, stories, and truthful statements and data that makes the BIG PHARMA, our government, the vaccines, Clinton, Pelosi,Biden and many others look innocent and clear of any wrong doing.
Anyone using fb is anti-America and too stupid to realize what they’re doing to their own country/rights. But keep taking pictures of your food, like people care.
THANK GOD PEOPLE ARE BEGINING TO WAKE UP FROM THEIR WOKE STUPIDITY!!!
I DROPPED MY ACCOUNT ON FACEBOOK 2 YEARS AGO.
I despise Facebook for it’s censorship. I am one step away from deleting my account. If it continues, as I assume it will, I will abandon Facebook for a more respectful, open and honest platform.
What a shame when Meta lost 238 Billion dollars Zuckerbergs net worth dropped 30 Billion. I guess that’s what happens when you run FB like a communist dictatorship. They need their 230 protection taken away.