After tumbling down 24% on Thursday, Meta share prices reached its lowest point in the last 4 years
Facebook parent ‘Meta’ continues to experience turmoil in the stock market as stock prices go down more than $700 billion. Just this Thursday, the share prices went down almost 24%, taking it to its lowest level in 4 years.
This downfall started when CEO Mark Zuckerberg announced to turn Facebook into Meta and dive into the metaverse industry on October 28, 2021. Wall Street analysts describe the share price fall as a ‘train wreck’. Others have also been criticizing Zuckerberg for the decision of entering into the Metaverse business.
The price to switch towards the Metaverse is being paid by shareholders, just last year Meta market value reached a peak of more than $1 trillion. Revenue was also over the board since advertisers and marketers were actively investing on Instagram and Facebook, however now things are quite different for the company.
With the start of 2022, almost the whole tech industry noticed a downfall of 31%, but things were even worse for Meta. The tech giant’s shares went down by 67% resulting in a market value loss of over $700 billion.
Massive value decline and increased criticism has raised questions for both Meta and Mark Zuckerberg. Two of Meta’s most profitable social media businesses; Facebook and Instagram have also been noticing a decline in growth, making things worse for the company.
Advertising was one of the main revenue sources for both Facebook and Instagram, however reports show that both the platforms are noticing a decrease in advertising revenue in this quarter. The report shows that sales on the platforms dropped down to 3.7% cornering both Meta and its investors.