Topline
Facebook-Guardian Meter shares fell more than 25% on Thursday – erasing বাজার 230 billion in market value for the worst trading session in history – after the company’s disappointing quarterly earnings report saw a decline in users and increased costs related to the company’s Metavers project.
Facebook’s stock has fallen the biggest ever, losing a quarter of its value in a single day.
The main facts
Shares of Facebook’s flagship meta platform are set for the biggest fall in a single day, falling 25% and the value of an eraser exceeds $ 230 billion.
According to Bloomberg, the sharp fall in the company’s market capitalization, which now stands at about $ 670 billion, is leading to the largest extinction in the history of the US market.
Meter shares have fallen since the release of a weak quarterly earnings report. The company has outperformed the expected direction for revenue and warned of various business challenges.
Investors dropped shares of the tech giant after being concerned about both user decline and rising costs tied to the company’s focus on growing and virtual reality.
Meta also reported that Facebook is losing users every day. This was the worst news in the history of Facebook. The company says its core business is slowing down, with executives blaming increased competition like TikTok.
What’s more, Zuckerberg transferred more assets to the company to form his idea of Metavers: Facebook spent more than 10 billion on these lines last year and expects a similar “significant increase” in similar spending for 2022.
Large number: $ 28.6 billion
How much did Facebook co-founder Mark Zuckerberg’s assets shrink on Thursday? SME‘Count. Its current value is $ 85.9 billion, down from $ 100 billion for the first year.
Most important quote:
“This is not just a frustrating quarter, but a moment of existence for the Mater,” said Adam Chrisfully, founder of Vital Knowledge. “Investors will be forced to take a long and hard look at the company’s competitive position and consider whether it is heading for a long period of subperperformance – making it difficult for stocks to recover quickly.”
Against:
While Meta’s near-term growth outlook was “disappointing,” 2022 will be a significant year for the company as it pushes it into Metaverse, according to Bank of America analysts who maintain a “buy” rating on the stock. Although increased competition from TikTok, challenges related to Apple’s changes to iOS advertising, and factors such as large investments in Metavers will affect revenue, Facebook predicts that it will return in the second half of 2022, they predict.
Original background
Facebook, which went public in 2012 with an estimated 100 billion in valuations, has experienced share gains almost every year. However, 2018 has seen a decline. In 2018, Facebook started this year with a market capitalization of close to $ 1 trillion. However, the latest financial results of the company, and its subsequent sale off a stunning change of fortune. This is after enduring many scandals over the years and having a long history of holding Teflon stocks. In March 2018, the shares of Facebook fell sharply This came after the Cambridge Analytica Crisis brought the company under strict scrutiny After a decline of about 20%, the shares recovered within two months. Zuckerberg appeared in Congress several times and the company reported solid quarterly earnings. At the end of July 2018, the stock fell 19% as Facebook moved to Instagram Stores (away from Newsfeed). The company also posted disappointing quarterly earnings. The stock reversed most of its losses the following year, however: বৃদ্ধি Revenue growth slowed for three quarters before accelerating again, ”Mizuho’s James Lee said in a recent note.
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