Meta Shares Crash 26% in Biggest Single-Day Wipeout in History; Valuation goes down By Nearly 220 Billion, Know more here
Meta, formerly known as Facebook saw a historic plunge yesterday on February 3. After this, the company reported a rare profit decline due to a sharp increase in expenses, shaky ad revenue growth and few daily US users on its flagship platform. Meta’s shares fell by 26% taking the valuation down to $220 million of the company’s market capitalization.
This massive drop erased over $200 billion from Meta’s market capitalization and around $29 billion from CEO Mark Zuckerberg’s net worth dragged him to the 12th position in the world’s richest individuals list. According to Reuters analysis, it was one of the biggest slides in market value for a US public company.
The main question is why did it happen? According to the data, it was the company’s worst one-day loss since its Wall Street debut in 2012.
Meta was broadly held stock by various investor groups, including hedge funds, according to recent reports, leaving several funds potentially exposed by the wipeout in its shares. It was a famous stock for retail investors who appeared positive to be buying the dip.
Meanwhile, a historic plunge in the stock price of Facebook’s parent company helped other stocks to pull lower on Wall Street on Feb 3 ending a 4-day winning streak for the market.
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