Facebook’s parent Meta dropped over 26% on Thursday after the company forecasted weaker-than-expected revenue growth in next quarter. It also revealed that it is taking a massive hit from Apple’s privacy changes and showed the first quarterly decline in daily active users on record.
This is the biggest-one day drop ever, ahead of the 19% plummet it saw in July 2018, Thursday’s drop shaved more than $230 billion from its market cap.This brings it to about $660 billion, with the company missing earnings estimates for the fourth quarter. Facebook’s active users have fallen to 1.93 billion, with CEO Mark Zuckerberg saying that the company is facing serious competition for user time and attention, specifically from TikTok.
Zuckerberg however did stat that he is investing more in the meta verse project and is shifting more of Meta’s resources into making it a success. Facebook spent more than $10 billion along these lines last year. According to Forbes calculations, Zuckerberg himself saw $28.6 billion slashed from his net worth, dropping below the $100 billion mark for the first time since last year at $85.9 billion.
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