Over $230 billion!Meta set a new record for the largest one-day market value loss


On Thursday, Internet platform company Meta Platforms closed down 26.39%, meaning the company has lost nearly $237 billion in market value in just one day, beating apple inc’s market cap of $180 billion in September 2020.The main reason for the sell-off was Wednesday’s after-hours earnings report, which not only missed expectations but also surprised the market with first-quarter revenue guidance.In the fourth quarter of 2021, the company reported revenue of $33.671 billion and net profit of $10.285 billion, marking the company’s first year-on-year profit decline (-8%) since the second fiscal quarter of 2019.The company also disclosed first-quarter revenue guidance of $27 billion to $29 billion, representing growth of 3 percent to 11 percent, well below analysts’ expectations of $30.15 billion.META also revealed in the earnings report that consumers switching to streaming media with lower currency conversion rates, apple system rule changes, and changing regulatory winds will continue to have a negative impact on targeted advertising.Inflation and supply chain problems in the real economy can also affect advertisers’ budgets, and even the exchange rate can be a headwind.The collapse of Meta also reflects the hidden risks of Internet giants at sky-high valuations: Today’s 20% drop in Meta wiped out more wealth than 452 companies in the S&P 500.It’s worth noting that this isn’t the first time Meta has seen such a big drop.Back in July 2018, Facebook’s share price fell 19%, wiping $120 billion off its market value, as user growth slowed.At the time, it also set a record for the biggest one-day loss of value for U.S. stocks, a figure that would not be beaten until 2020.It is worth mentioning that Thursday’s plunge in Meta also hit a number of Wall Street funds.Among fundamental and mutual funds with a combined $1 trillion under management as of the end of last year, Meta is one of the few Internet heavyholdings in the category, according to Wells Fargo.That also means the funds are not only exposed to Thursday’s sell-off, they are missing out on the continued growth in the profitability of tech giants like Microsoft and Apple.By Meta plunge drag, a number of Internet companies rely on digital advertising business synchronous weakness.As of Thursday’s close, Facebook was down 23.60%, Pinterest was down 10.32% and Twitter was down 5.56%.

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