In what can only be called a stunning turn of events, Facebook’s parent company Meta stock price lost more than $200 Billion in stock market value on Wednesday. According to Bloomberg, this represents the biggest one-day decline of a stock in US history. The fall came as a result of a poor Q4 2021 earnings report mainly due to increasing privacy concerns and a decline in users. Business professionals are closely watching these developments and will no doubt be looking for clues about the future of social media marketing.
According to Yahoo, CFO David Wehner pointed to Apple’s iOS privacy changes, inflation, and exchange rates as the biggest headwinds for the company moving forward. However, another major concern, perhaps even bigger than Apple’s iOS privacy issues, is the stiff competition from rival social media platforms like TikTok. This especially holds true for the younger, Gen-Z demographic as they tend to view Facebook as the social media their parents use and is no longer what’s cool or trending.
If you own stock in Meta prepare to be in for a wild ride, and I pray you also don’t own stock in Peloton; otherwise, you might want to really buckle in for this journey because it’s going to be a rough one.
As of 2:13 pm EST, Meta stock price is trading at $238.32 down now 26.22% from close yesterday of $323. Facebook ‘Meta’ seems to be falling further and further with no bottom in sight.