Facebook and Instagram parent company Meta’s investors wiped at least $80 billion off the market value, while the stocks for the company have plunged at least 23% as of Thursday. This comes after the company released its third-quarter report which showed that the profits have halved by 52% to $4.4 billion while the reported quarterly revenue was $27.7 billion.
Meta’s report on Wednesday also reflected its second straight quarterly decline. Since the report was released there was a 25% plunge in Meta’s share price and as the markets opened the next day the situation worsened when the price briefly dipped below $100 which was reportedly the lowest since 2016.
unkindwhile, advertisers have also reined in spending amid a downturn in the global economy, which is a crucial revenue point for the company. Furthermore, Instagram and Facebook’s parent company for the first time is also reportedly losing daily active users to competition from TikTok.
The third quarter report by Meta also showed an increase in spending by 19% when compared to last year which media reports have attributed to its spending on metaverse and short-form video-content product Reels. While Reality Labs, the company’s metaverse division, has reported a $3.7 billion loss in the past three months.
“Over time, these are going to end up being very important investments for the future of our business,” said Zuckerberg when investors expressed concern over the losses faced. He added that while the company is facing “near-term challenges on revenue” it has the fundamentals for a return to “stronger revenue growth.”
However, while the company has heavily invested in new products they have shown no results so far. In February, Meta also saw the biggest one-day loss in history for any US-based company after the share price dipped by 26%.
This has also affected Meta’s CEO Mark Zuckerberg’s personal fortune after he lost more than $100 billion in 13 months bringing his net worth to $38.1 billion, said a report by Bloomberg. He reportedly holds more than 350 million shares in Meta and a 13% stake in the company. Once among the top three on Bloomberg’s Billionaires Index the Meta CEO’s rank is now 23rd as of Wednesday.
(With inputs from agencies)
WATCH WION LIVE HERE
You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.