![]() ![]() Spotify has been beset by a row over COVID-19 vaccination misinformation and also released disappointing results.ĭon’t miss out on ET Prime stories! Get your daily dose of business updates on WhatsApp. Other social media stocks were also hit hard on Thursday, including Twitter, Pinterest and Spotify. In the past week purchases of large-cap tech have skyrocketed while speculative assets have seen very little demand. Investors seem to be becoming highly selective after the sector's record-breaking run in recent months.Īccording to research firm Vanda, purchases from retail investors in late 2020 and early 2021 were focused on expensive tech, EVs and so-called "meme" stocks. The disappointment over Meta's earnings and the subsequent stock fall invoked memories of the bursting tech bubble in 2000. Meta reported a decline in daily active users from the previous quarter for the first time as competition with rivals like TikTok, the video sharing platform owned by China's ByteDance, heats up. 3, 2020, while Microsoft lost $177 billion on March 16 in the same year. With Big Tech firms like Apple and Microsoft ballooning in valuations in the past few years, they have also become more susceptible to investor whiplash, often resulting in losses worth tens of billions of dollars in a single day of trade.Īpple shed nearly $180 billion on Sep. Short sellers in Meta were poised to increase their potential 2022 gains to more than $2 billion with Thursday's plunge, according to S3 Partners. The stock's drop was in addition a boon for investors betting on a decline in the company's shares. He called the trading declines "an overreaction." ![]() On Thursday, Meta's market value sank to 268 billion, down from more than 1 trillion in September of 2021. It was the guidance that spooked people," Jeffress said. Meta's plunge translates into an eye-popping loss of about 700 billion in market value. "The results, taken in their entirety, were okay. Jeffress pointed to strong or increasing numbers Meta reported for user engagement, advertising and revenue per user. David Jeffress, portfolio manager at Laffer Tengler Investments, said on Thursday the firm is looking to add to its stake in Meta as the stock declines. Some portfolio managers also saw a reason to buy. ![]() It was also a popular stock for retail investors, who appeared to be enthusiastically buying the dip. Other institutional investors were also heavy owners. ’s one-day crash now ranks as the worst in stock-market history. Meta was a widely held stock by various investor groups, including hedge funds, according to recent data, leaving a number of funds potentially exposed by the wipe-out in its shares. Their reports also sent Twitter up 8%, and helped Meta recover 1%. That is bad news for the social media juggernaut because of the fact that this is the sort of thing that could potentially end up putting pressure on it to show its investors that it still has some potential for growth in the future, and the metaverse might not be enough for that.After the market closed, social media platforms Pinterest and Snap posted strong quarterly reports that sent their shares soaring 17% and 52%, respectively, more than reversing losses from earlier in the day. It seems unlikely that Meta will be able to make a recovery before the year is out. Some might suggest that these declining share prices are commensurate with volatility in the wider market, but that is not factual since all of these stocks have performed significantly worse than the Nasdaq 100 with all things having been considered and taken into account. Daniel Howley Februat 9:11 AM 4 min read Facebook parent company Meta ( FB) took a shellacking Thursday following its Wednesday Q4 earnings results, amid a miss on earnings per. This struggling social media company has seen its share price fall by as much as 77%, and Pinterest has been having a bad year as well with its pandemic growth spurt fizzling out resulting in a 43% in the price of its shares. Meta’s stock price has fallen by 52% this year, but they are by no means the worst performers. Apple’s app tracking prohibition is a major cause for this, but in spite of the fact that this is the case there are other factors at play as well such as a higher degree of competition from platforms like TikTok as well as inflation forcing companies to slash their ad budgets. ![]() With all of that having been said and now out of the way, it is important to note that a confluence of different factors might further contribute to Meta’s stock price declining over the course of the rest of the years. This coupled with Apple’s new policy that restricted access to third party data has sent Facebook’s stock into a death spiral, and last year’s rebranding as Meta has not done much to fix the problem. Facebook has fallen from grace after being the darling of the social media world for about a decade or so, and much of this decline can be attributed to the rather soulless impression that people have developed about the social media platform. ![]()
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