Meta Platforms Inc. Crash Is The Most Worst In The History Of Market
The one-day crash of Meta Platforms Inc. could rank among the worst in stock market history. Facebook’s parent company fell 20% in early US trading on poor earnings results, putting it on track to lose about $180 billion in market value.
While there is no certainty, the losses will stick, especially given the recent volatility that has hit tech stocks. A drop on that scale at the close would rank among the top five biggest one-day drops for any company.
A data point illustrates how tech companies have exploded in size to become behemoths with unprecedented market power and the drama that can occur when they stumble.
Another way to illustrate the drop is if a 20% drop in Meta would be higher than the market value of S&P 500 of 452 members.
As worst market history had, Meta crash 22% with PT reduced on TikTok threat is a street wrap. Youssef Squali, an analyst at Truist Securities, wrote that Meta is in the midst of a perfect storm.
Traders dumped shares of Meta in droves after the company gave a disappointing sales forecast, fueling concerns that. It faces stagnant user growth and competition from rivals such as TikTok. Twitter Inc., Snap Inc., and Pinterest Inc. traded more down, putting pressure on Nasdaq 100 Index futures.
The stock was trading at $256 in New York, down from yesterday’s week close of $323.
Meta’s market capitalization at the previous close was approximately US$900 billion. The company is part of Faang’s initial cohort of tech mega-caps, including Google’s parent company Alphabet Inc., Amazon.com Inc., and Apple Inc. Further, Meta Slump accounts for halving Nasdaq futures losses 100.
It is not the first time that Meta’s shares have fallen sharply. The stock fell 19% in July 2018 due to a slowdown in user growth, translating into a $119 billion downhill in market capitalization. At the time, it placed the record for the largest one-day loss in value for a US-listed company.
