Leah Week 3 - Meta Stocks Drop by 26%

Facebook (Meta) has experienced it’s largest stock drop in one day since July of 2018 when it dropped by 19%. Now, Meta stock shares have dropped by a significant amount of 26%. Meta reported low revenue growth in the following quarter on Thursday, creating the drop. Meta projected revenue in the first quarter to be between 27 billion United States dollars and 29 billion United States dollars. Many who own Meta shares are disappointed since they expected higher predictions, higher than 30 billion United States dollars.


Meta has accused Apple’s new iOS privacy policies and macroeconomic issues pulling the amount spent on advertisements down. After the Facebook stock dropped, many other social media stocks followed suit. Meta has now lost more than 230 billion US dollars from its market cap, pulling it down to 660 billion United States dollars. The creator of Facebook, Mark Zuckerberg, has now also been dropped from the list of top 10 wealthiest people in the world. 


I think that Meta, especially Facebook, has been on it’s way to losing a significant amount of money for a long time. Other social media apps and companies, such as TikTok, have quickly taken the world's attention from Facebook in the last few years. Also, Meta’s apps use of personal information without their users being aware has been exposed to the world. Since many were angry and uncomfortable with this, Apple’s new policies to solve this issue has prevented Meta apps from making money by selling and using personal information. Although this is a huge loss for the Meta company, it is an important step to take in order to protect individuals private information. 


What do you think about this current event? 


Citations


Source

Source

lauren_feiner. “Facebook Stock Plummets 26% in Its Biggest One-Day Drop Ever.” CNBC, CNBC, 3 Feb. 2022, https://www.cnbc.com/2022/02/03/facebook-shares-plummet-22percent-after-reporting-weak-guidance.html. 

lauren_feiner. “Facebook Shares Plunge More than 20% on Weak Earnings, Big Forecast Miss.” CNBC, CNBC, 3 Feb. 2022, https://www.cnbc.com/2022/02/02/facebook-parent-meta-fb-q4-2021-earnings.html. 






Comments

  1. AnonymousFeb 9, 2022, 10:20:00 AM

    This news was a bit shocking to me. I thought Facebook was one of the most popular social media apps so it was surprising when it was reported that it wasn't doing well and stock shares plummeted. As you said, it has dropped significantly before and recovered so I personally don't see Facebook completely failing in the near future, but its user base is shrinking and its days are definitely numbered.

    ReplyDelete
  2. AnonymousFeb 12, 2022, 4:20:00 PM

    I think that it's crazy how fast things can change. One second Mark Zuckerberg is one of the top 10 wealthiest men and the next he isn't. I think that this was somewhat inevitable because everything starts to become a fad at one point. Something is always replacing the old. Just like TikTok is replacing Facebook. The amount that these stocks have dropped is extremely surprising, and it's crazy to me how fast everything can change.

    ReplyDelete

Post a Comment

Popular posts from this blog

Ben Nikpour - Week 10: Oscar Viewers are Dropping

Image
     Before a few days ago, I did not know much about the Oscars. I knew it was an award show, but besides that, I was basically clueless. It wasn’t until the Will Smith and Chris Rock situation that I spent the time to look into what the Oscars are.       For some background, the Oscars, properly known as the Academy Awards, are awarded to artists in the film industry. The first show was in May of 1929. At its peak, in 1998, the Oscars brought in over 55 million viewers; that same year was the release of one of the biggest movies of all time: Titanic. Since then, viewers have been dropping. In 2020, the Oscars had their lowest amount of viewers with only 24 million people watching the event. In 2021, the Oscars broke their 2020 record of lowest viewers by only bringing in less than 11 million people. This year the Oscars brought in close to 17 million viewers which is an improvement but not by much. Award shows like the Grammys, Emmys, Golden Globes, ...
Read more

Noah Bard Week 1 - The Misunderstanding of our Modern-Day Gladiators

Image
   When I hear the word gladiator, I Immediately think of the Colosseum and humans being eaten by lions. However, times have changed, and so has the term gladiator. I’m talking about the sport of MMA, and more specifically, UFC fighters. Besides the few million crazed fight fans out there like myself, the current consensus about MMA is that it’s stupid. At face value, it’s a very sensible conclusion to make. Why in the world would anybody want to risk their lives on national television, or in that case at all? Well, here’s why.      Every day before that bell rings, these men and women are mastering the art of fighting. It takes much more than just supernatural athleticism; it ultimately comes down to the fighter's mental fortitude. Every slight move in the eyes, feet, and hands of your opponent must be taken into account to win. It’s a common stereotype to think that fighters aren’t very smart and not only because of what they do for a living, but oftentimes it...
Read more

Ariella Green Week 7: The Airport

Image
  Ariella Green Week 7: The Airport      Don’t ya hate going to the airport?       I absolutely can not stand going to the airport. As I’m sure most of you know, I am very organized and like to plan out everything. When things don’t go according to the plan, it stresses me out.       Thursday morning, I assumed I would have an easy experience flying from PBI to JFK on JetBlue airlines. Little did I know, there would be many little bumps along the way that I had to deal with while trying to catch my flight.       First, we arrive at the airport at around 10:30 for our 11:45 flight. I personally believe that you should always give yourself enough time at the airport, so you don’t have to rush at the gate or if you want to make a purchase. We also had to face the challenge of finding somewhere to park, which is nearly impossible sometimes. After searching for a while, we found...
Read more