Facebook parent Meta loses $200 billion in market cap after dire earnings, on track for the biggest loss of value in stock-market history
Metaplunged 26% at the open, with investors bitterly disappointed by its fourth-quarter earnings.
- The move wiped roughly $230 billion from Meta's market capitalization, putting it on track for the biggest one-day valuation drop in US history.
Meta, the company formerly known as Facebook, lost roughly $230 billion of market value in early trading Thursday after disappointing investors with fourth-quarter earnings that showed daily users falling for the first time ever.
It put the company on track for the biggest one-day wipeout of market value in US history, according to Bloomberg data.
The drop slashed the company's market capitalization – the value of all its shares combined – from $898.5 billion to $668.4 billion.
Meta CEO Mark Zuckerberg said Wednesday that earnings were likely to stay under pressure, not least due to competition from other social media apps such as TikTok.
"People have a lot of choices for how they want to spend their time, and apps like TikTok are growing very quickly," Zuckerberg said.
It was far from certain that the huge drop in Meta's market cap would hold, however.
Trading has been especially volatile recently, as investors have braced for the Federal Reserve to hike interest rates. Tech
According to Bloomberg, the biggest one-day wipeout until now was suffered by Apple, which lost $180 billion of value in September 2020.
Meta's profit came in at $10.3 billion in the fourth quarter, the tech giant said Wednesday, giving earnings per share of $3.67. Analysts polled by Bloomberg had expected EPS of $3.84.
Facebook's daily active users fell to 1.93 billion, the first quarterly decline on record. Analysts had been expecting a 1.95 billion figure.
Worryingly for investors, Meta issued some tepid guidance for the first quarter. It expects revenue to come in at $27 billion to $29 billion, down from $33.67 billion in the fourth quarter and below market expectations.
Laura Hoy, equity analyst at broker Hargreaves Lansdown, said: "Investors were understandably troubled by the results, made worse by news that the current quarter was coming with a host of headwinds — not least of which being uncertainty about advertising budgets."
- MrBeast called out TikTok for allowing a deepfake version of him hawking $2 iPhones to run wild on the app: 'This is a serious problem'
- How an OnlyFans creator earned $60,000 from a 'marathon' livestream
- TikTok's strategy for US dominance is straight out of Amazon's playbook — but creators are the fuel for its flywheel
- 10 famous book markets in Mumbai every reader should explore
- Asian Games: Indian men's hockey team storms into final, defeats South Korea 5-3
- Govt hikes LPG subsidy for Ujjwala beneficiaries to Rs 300 per cylinder
- Checkout the ICC Cricket World Cup 2023 matches that will be played in Chennai
- Rockstud Capital announces partial exit from Uber’s fleet service provider