Weak revenue outlook for Meta helped dragged down stocks of other social media companies such as Twitter and Snap too
Associated Press
February 04, 2022 / 08:45 AM IST
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A historic plunge in the stock price of Facebook’s parent company, Meta Platforms Inc., helped yank other tech stocks lower on Wall Street on February 3, abruptly ending a four-day winning streak for the market.
The 26.4 percent wipe-out in Meta, erased more than $ 230 billion in market value, easily the biggest one-day loss in history for a United States company.
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A weak revenue outlook for Meta helped drag the stocks of other social media companies including Twitter and Snap lower too.
The tech-focused NASDAQ gave up 3.7 percent, its biggest loss since September 2020. The S&P 500 fell 2.4 percent.
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Wall Street is spooked as Meta puts a lot of virtual eggs and billions of dollars into the metaverse basket.
While shares of the company reported a rare profit decline due to a sharp rise in expenses, shaky ad revenue growth and fewer daily United States users on its flagship platform, it, at the same time, invested more than $ 10 billion in its ambitious plan to transform Meta Platforms Inc. into a metaverse company.
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