Meta Sees Historic Drop as Stock Tanks
Meta, the company formerly known as Facebook is putting a lot of virtual eggs and billions of dollars into the Metaverse basket, and Wall Street appears very anxious about it.
Meta’s shares fell more than 26% to $237.76 in afternoon trading Thursday, lopping more than $230 billion off the company’s overall value.
That's the largest single-day decline for a company on record.
It came after the social media giant reported a rare profit decline due to a sharp rise in expenses, shaky ad revenue growth, competition from TikTok and fewer daily U.S. users on its flagship platform.
At the same time, it invested more than $10 billion in the ambitious plan to make the company “Metaverse-based.” or based in virtual reality, a new frontier that investors are uncertain about.
Still, C-E-O Mark Zuckerberg appears confident.