Sixteen months ago, Facebook’s market cap crossed $1 trillion and it joined an exclusive club of wealthy companies that includes Apple, Microsoft, Alphabet, and Amazon. However, as of present-day Meta (Facebook’s parent company) is worth less than Home Depot and only slightly more than Pfizer and Coca-Cola. After CEO Mark Zuckerberg’s dive into the metaverse, Meta is no longer one of the world’s top 20 most valuable companies by market capitalization.

mtea stock falling
Meta is No Longer a Top 20 Stock

Fall of Meta

A year ago, Meta announced its move to invest in virtual reality as well as a name change from Facebook Inc. to Meta Platforms.

In February, Meta’s stock price decreased so sharply that the company was no longer one of the world’s ten most valuable companies.

At approximately $260 billion, Meta is now the 27th most valuable company in the world– a lagging far behind Apple takes 1st place, Tesla in 6th, and Exxon trailing closely in 10th place on the ranking. This tough fall from grace has come hard and fast from its all-time high market cap of just under $1 trillion at only the start of this year.

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fall of meta stock

On Thursday, after Meta reported its second consecutive quarterly revenue decline, the company’s shares fell to a low of $97.36. Consequently, the stock price has decreased by approximately 70% this year alone.

Thursday’s stock price drop comes only eight months after Meta’s shares plummeted 26.4% on February 3 — the biggest one-day loss ever for a US company. This happened after Facebook reported that its daily active user base had shrunk for the first time ever. As a result, $240 billion was eradicated from Meta’s market value.

Will it Recover?

On Wednesday, the company stated that it anticipates total expenses for the current year will fall between $85 billion and $87 billion. For 2023, that number is estimated to grow anywhere from $96 billion to $101 billion. This is seen as a negative by many investors because they were expecting Meta to take more aggressive cost-cutting measures.

What's next for meta
What’s next for meta

Unfortunately, the punishments associated with Meta’s stock are not abating anytime soon. In fact, Meta’s stock is down by as much as 23 percent in premarket trading after investors were alarmed by the company’s increasing costs to finance its virtual reality endeavours, as well as a drop in revenue.

More difficult times could be on the horizon for Facebook’s parent company, as it released weak fourth-quarter guidance and warned of declining sales due to a slowdown in digital ad spending. Also of concern to investors and analysts is Zuckerburg’s metaverse pursuit, which is projected to generate even more losses in 2023.

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By Sardar Arslan

Sardar Arslan is a highly respected figure in the blockchain and cryptocurrency space. A well-known author, investor, and public speaker, he is focused on emerging technologies such as blockchain and cryptocurrencies. He has been quoted in numerous publications on these topics, and his insights are sought by business leaders and entrepreneurs around the world.