The owner of Facebook Meta Platforms saw its stock decline by more than $230 billion (PS169bn) this Thursday, which was a record daily loss for a US company.
The company’s shares fell 26.4 percent after the quarterly results dissatisfied investors.
Meta added that the number of Facebook’s daily active users (DAUs) decreased to the lowest level in the company’s history of 18 years.
According to Bloomberg Billionaires Index, the slide in the price of shares has seen the chief executive’s net worth drop by $31 billion. Bloomberg Billionaires Index.
The decrease in Mr. Zuckerberg’s fortune was comparable to the Gross Domestic Product of Estonia.
Even after the decrease, even after that drop, Mr. Zuckerberg is estimated to have a net worth of around $90bn, which means he’s still one of the most wealthy people in the world.
This came as Meta disclosed that Facebook’s DAUs decreased to 1.929bn during the three months leading up to the end of December compared to 1.930bn during the previous quarter.
The first time this activity level took place on the world’s largest social network was in reverse.
Meta’s stock market plunge occurred on the 18th anniversary of Facebook’s founding Facebook.
- Facebook is a daily user that will decline for the first time
- Diem, a Facebook-funded cryptocurrency, is going down
Meta has also warned of slowing growth in revenue due to competition from competitors like TikTok and YouTube and advertisers also cutting back on spending.
Mr. Zuckerberg stated that the company’s sales growth was hurt because the audience, especially those of a younger age, were moving to competitors.
The company forecasted revenues between $27bn and $29 billion in the year’s initial quarter, which was less than what analysts had hoped for.
While the company has made investments in video services to compete with TikTok, which Chinese tech giant ByteDance However owns, it earns less money from these offerings than its more traditional Facebook and Instagram feeds.
Meta is battling a variety of various issues.
In the year 2000, Apple introduced its App Tracking Transparency Policy.
The users can decide whether or not they wish to be monitored on the web by companies like Meta, offering that data to advertisers.
This is a huge issue for Facebook as it is a way of finding information about you and then selling advertising the way it earns money.
The company’s quarterly results indicated that the advertising revenue had declined in part due to this.
Meta’s competitors, such as TikTok, attract younger viewers. However, the growth of users has been slow across the globe.
There are more serious, long-time issues as well.
Meta earns money through advertising. The company’s name has been changed to signify an idea – the Metaverse, something that isn’t yet in existence and isn’t expected to be short.
Mark Zuckerberg is committed to investing tens of billions of dollars to fund the project, despite evidence that users’ desire to live their lives through virtual reality is abysmal.
This means that many investors aren’t friends.
Meta, who owns the second largest online advertising platform, second only to Google and Facebook, also stated that privacy changes hit Apple’s operating system.
The changes that make it more difficult for companies to reach and evaluate their advertisements for Facebook and Instagram can impact “in the order of $10bn” in the current year, The firm claimed.
“Meta got more impacted compared to its rivals as other social media like Snap posted healthy results,” said Sachin Mittal, director of internet and telecom sector study for DBS Bank.
“While there has been a broad negative impact on the whole tech sector, we reckon players with lower reliance on targeted ads or better algorithms to cope with Apple’s changes would still do well.”
The decline in the share price of Meta was also felt on the other platforms for social media, which include Twitter, Snap, and Pinterest, in the regular trading session of Thursday.
However, Snap’s shares surged nearly 60% during trading after hours as it announced its first-ever quarterly earnings.
