Facebook Loss $230 Billion in US Stock Plunge. It is considered the biggest one-day loss in history for a US company. Facebook shares dropped to 26.4%. It happens after the company reported that the daily active users (DAUs) had dropped for the first time in its 18-year history.
As a part of as part of a strategic pivot to becoming a virtual-reality-based company, Facebook rebranded to Meta last year.
Meta confirmed that the expected revenue growth to slow because users were spending less time on its more lucrative services. In addition, Facebook was also affected due to privacy changes of Apple which cost them almost $10 billion this year.
According to Laura Hoy, “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”.
The drop in stock price has caused Mark Zuckerberg’s personal wealth to tumble by nearly $30 billion. He stated that he was “proud” of the work the company had done last year. He also acknowledged that the company faced tough competition for attention from competitors including TikTok. Since Tiktok has gained so much popularity from users.
Aside from Facebook, other social media companies’ stocks also fell. It includes Twitter, Snapchat, and Spotify.
Now, Zuckerberg is betting on metaverse in which users might live and work. However, he said that “Although our direction is clear, it seems that our path ahead is not quite perfectly defined.”.
Zuckerberg is now focusing on investing heavily in Tiktok and Instagram reel because they are hoping to attract more young-adult users. He said, “I’m confident that leaning harder into these trends is the right short-term trade-off,”.