![]() Meta shares fell by more than 26% on Thursday to close the day at $237.76 each - wiping off about $232 billion in value, which was the largest one-day drop in market value of any stock in US history, Dow Jones reported, citing its market data. The Facebook founder’s personal net worth dropped approximately $29.7 billion on Thursday, according to Forbes’ real-time calculations.īy the end of trading, Zuckerberg’s on-paper fortune was estimated to be $84.8 billion, knocking him out of the Top 10 among the world’s richest individuals. Mark Zuckerberg has more than one reason to cover his eyes after his Facebook shares suffered a historic selloff in trading Thursday. “The question is where is the next growth engine coming from.Meta’s return-to-office edict takes effect as employees report to workĭana White’s UFC in showdown with rival Pillow Fight ChampionshipĬhuck Schumer to host Elon Musk, Mark Zuckerberg at AI forumĮlon Musk slams Facebook for ‘manipulating the public almost everywhere on Earth’ “There’s a general sense that what’s been moving the market higher is not going to take us to the next level,” McMillan said. The disappointment over Meta’s earnings and the subsequent stock fall invoked memories of the bursting tech bubble in 2000.īig technology and communications companies played a big role in driving gains for the broader market throughout the pandemic and much of the recovery in 2021, but the market seems to have shifted, said Brad McMillan, chief investment officer for Commonwealth Financial Network. Apple shed nearly $180bn on 3 September 2020, while Microsoft lost $177bn on 16 March in the same year. With big tech firms like Apple and Microsoft ballooning in valuations in the past few years, they have also become more susceptible to investor whiplash, often resulting in losses worth tens of billions of dollars in a single day of trade. “The tech selloff spilled over to broader equity markets this morning and with the Fed preparing to raise interest rates, we could see more volatility going forward,” he said. “The downgrade in the earnings outlook by Meta and other companies took markets by surprise,” said Kenneth Broux, a strategist at Societe Generale in London. The Nasdaq, which is dominated by tech and other growth stocks, fell more than 9% in January, its worst monthly drop since the coronavirus-induced market crash in March 2020. The company has come under pressure after Neil Young pulled his music from its platform to protest the spreading of Covid misinformation by Spotify’s star podcaster, Joe Rogan.īig US tech-focused companies have come under mounting pressure in 2022 as investors expect policy tightening at the US Federal Reserve to erode the industry’s rich valuations following years of ultra-low interest rates. Spotify also slumped 16.8% after the leading music-streaming service gave investors a weak forecast for a closely watched measure of its earnings. ![]() The stocks of other social media companies including Twitter and Snap also fell. The fall of Meta’s stock helped yank other tech stocks lower on Wall Street on Thursday, abruptly ending a four-day winning streak for the market. On a Wednesday call with investors, Zuckerberg said he was “proud” of the work the company had done last year but acknowledged the company faced tough competition for attention from rivals including TikTok. “Meta CEO Mark Zuckerberg may be keen to coax the world into an alternate reality, but disappointing fourth-quarter results were quick to burst his metaverse bubble,” said Laura Hoy, an equity analyst at Hargreaves Lansdown. Meta also reported a rare decline in profit due to a sharp increase in expenses as it invests in the “metaverse”. ![]() It was a disappointment for a company that investors have become accustomed to delivering spectacular growth.
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