The price of shares in Meta – the parent company of Facebook, WhatsApp, Instagram and Meta Quest (fka Oculus) – is down more than 25 percent from the previous day’s close, the morning after it saw its first-ever consecutive decline in Facebook’s daily active users. After closing at $323 on Wednesday, they fell to $238.90 before recovering slightly.
Bloomberg reports that the $200 billion plunge may be the biggest one-day drop in market value ever as Meta struggles with dwindling relevance among young people and CEO Mark Zuckerberg shifts his focus to “metaverse” plans.
Meta wasn’t the only company having a rough Thursday; the entire Nasdaq exchange was down nearly 2 percent by noon, and rivals Snap and Twitter were also trading lower. Snap, which is listed on the New York Stock Exchange, fell more than 20 percent shortly before 11 AM ET, and Twitter, also on the NYSE, fell about 6 percent.
Meta, of course, is still worth some $671 billion and reported more than $40 billion in profits for 2021, despite the “headwinds” often mentioned when talking to investors to discuss the results. That’s a slightly better position than it was after the “cluster fuck” of a 2012 IPO when it took an entire year for the company’s stock to recover to match its original offering price.