Since becoming Meta, Facebook’s parent company has lost $650 billion – National

It’s been exactly one year since Facebook’s parent company changed its name to Metaand during that time the company entered financial free fallsay analysts.

Comparing the market value of Meta when it was first announced on October 28, 2021 to this day, the company has shrunk a staggering $650 billion.

Shares of Meta fell 24% on Thursday, to $97.94, sending its shares to their lowest level in nearly four years. This event cost Meta about 67 billion USD, adding to over half a trillion dollars in lost value in 2022 alone. Meta’s market capitalization is now $263 billion. they are has a lower value than Home Depot and was dropped from the top 20 ranks.

Mark Zuckerberg, CEO of Facebook, saw his own fortune down 11 billion US dollars After the stock plummeted, according to Forbes, who downgraded him from the 25th richest person in the world 29th Richest at the market closed on Thursday.

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The incident echoes an earlier crash in February that saw about Meta’s $200 Billion Market Value Removed – the largest loss in market value ever recorded for a US company.

Since changing its name to Meta and investing heavily to create the “metaverse,” a virtual reality world, Facebook’s parent company has been plagued with calamities. Since the beginning of 2022, the company has lost 70% of its value.

At this time last year, on the day Facebook changed its name to Meta, the company’s market capitalization was just over $900 billion. Just weeks before it peaked at more than $1 trillion, joining an exclusive club that included Apple, Microsoft, Alphabet and Amazon. The company is growing rapidly.

Now, a year on, Meta is jumping from crisis to crisis.

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In February, when Meta’s stock fell 23%, Facebook Daily Active User Denied for the First Timesending shockwaves through the tech giant.

Late July, Meta reported Revenue drops for the first time, which fell due to falling ad spend as the economy started to pull. Competition for ad revenue is also heating up with Meta’s biggest competitor in the social media space, TikTok.

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Another problem: Apple’s recent privacy changes are making it harder for companies like Meta to track people for advertising purposes. Forbes reported that Apple’s changes cost Meta about $10 billion in ad revenue.

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All of these factors have worked together to slow Meta’s earnings, and they’ve also led us to this week, when Meta’s stock plunged again.

Similar to the massive one-day loss seen on Feb. 2, Meta’s stock crash on Thursday was triggered by a weak revenue reportpredicts a 50% drop in profits, with their plan to maintain their high spending to build the metaverse – with a total of about $87 billion, this will grow to about $100 billion next year.

There seems to be conflict between Meta and its investors, who see the metaverse as a money pit and are calling on the company to cut costs as the economy slows, while Zuckerberg bets all on it. its virtual reality technology.

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Meta’s augmented and virtual reality division, Reality Labs, has spent $9.4 billion this year (as of September 30) creating the metaverse, but it seems consumers aren’t interested in it. .

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Meta aims to have 500,000 monthly active users for Horizon Worlds, its virtual reality platform, but a leaked report suggests that company achieves less than half, as reported by the Wall Street Journal. The report also shows that most metaverse users do not return to the program again after the first month.

“An empty world is a sad world,” one person noted, according to the report.

It seems that if Meta wants to be the leader in the next generation of technology, it will have to work to convince both investors and consumers.

& copies 2022 Global News, a division of Corus Entertainment Inc.


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