It seems like the worst days of Facebook’s parent company Meta are here to stay for a little longer than anticipated. Mark Zuckerberg’s Meta Platforms was once the 6th largest company in the world. However, recently it has experienced a huge dip in its valuation. So much so that it is now out of the world’s top 20 companies list.
If you are curious to know about the whys and hows regarding the news, then you are at the right place. Read on to know about Mark Zuckerberg’s Meta downfall.
Downfall Of Mark Zuckerberg’s Meta Platform
The stocks of the Meta Platform have been witnessing a massive immersion. The reason goes to the distressing results of Q3 (June-September) as well as the ongoing one, (October-December). What adds to this is the fact that how Zuckerberg lost over $ 11 billion in a single day, last week. Furthermore, this loss has become a huge hit for his company’s valuation. The credit for Meta’s downfall goes to its valuation wipeout which as per the reports of Bloomberg is said to be $ 677 billion this year.
The disappointing part does not just end here. In addition to the aforementioned, the company’s share price also plummeted 70% this year. This is the key factor why Meta is now dropped out of the world’s top 20 companies.
At the start of the year 2022, Meta had a $ 1 trillion market value. However, Meta’s market cap now is around $ 260 billion, making it the world’s 27th most valuable company. As per Bloomberg’s report, its market value is now way smaller than Tesla, Exxon, and Chevron.
Meta’s Dip Has Been Advantageous To Its Woes
Meta’s dip has indeed been advantageous to its woe. A company that ranked 6th at first has now been shifted to the 27th position. Furthermore, Meta is also losing favors with brokerages. Several financial companies have cut ties with Meta. Morgan Stanley, Cowen, and KeyBanc Capital Markets are to name a few.
As per Bloomberg, the top 10 companies, as per market value, are Apple ($2.4 trillion), Saudi Aramco ($2 trillion), Microsoft ($1.7 trillion), Alphabet ($1.2 trillion), Amazon ($1.1 trillion), Tesla ($0.7 trillion), Berkshire Hathaway ($0.6 trillion), United Health ($0.5 trillion), ExxonMobil ($0.4 trillion) and Johnson & Johnson ($0.4 trillion).
Meta’s net income in the third quarter was down 52% to $4.4 billion. No wonder why the place that was first secured by Meta has been overtaken by Tesla.
Zuckerberg Asks For Patience
This a very challenging time for digital-advertising companies that is going on. Amidst all of this, Meta CEO Mark Zuckerberg asks for patience from all his investors. As for Meta’s ballooning costs, he justified it by saying they are to fund its version of virtual reality, the metaverse, as well as the artificial intelligence fueling major changes to its social networks.
Amidst all of this, what is worth noting is that Zuckerberg has also been hit by another dip. Before the bloodbath in Meta’s valuation, Zuckerberg has been dropped from Forbes’s top 10 richest American list for 2022. This has happened for the first time in 7 years. Now, how it all will turn out to be is something that will be interesting to witness.