Meta’s stock plummeted more than 25% in premarket trading in the United States on Thursday after the social media company released a dire forecast, blaming Apple’s privacy reforms and growing competition.
Shortly after the market opened, shares were down 25.6 percent, resulting in a $200 billion drop in the company’s market worth.
This is perhaps the most significant drop in the market value of any American corporation.
Mark Zuckerberg, the founder of Facebook, saw his personal holdings lose $20 billion in value.
For the first time, Meta reported a loss in daily active users from the previous quarter, as competition from rivals such as TikTok intensified.
According to Meta, roughly 3% of global monthly active users in the fourth quarter were merely breaching accounts, while duplicate accounts may have accounted for about 11% of usage.
Furthermore, Apple’s recent privacy restrictions make it more difficult for corporations like Meta to monitor users for advertising purposes, clamping down on the company’s earnings.
Investors predict policy changes at the United States Federal Reserve will weaken the industry’s lofty market values after years of ultra-low interest rates in 2022, putting a lot of pressure on large American technology companies.
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