Stock Value Facebook Mother Meta Plummets in New York
Meta Platforms, the company behind Facebook, WhatsApp and Instagram, saw almost a quarter of its market value evaporate on the New York stock exchange on Thursday.
As a result, the share price fell to its lowest level since 2016. Investors were shocked by the quarterly report of the social media company.
Meta saw quarterly revenue drop again due to declining advertising revenue. Advertisers have become a lot more reserved due to the deteriorating economic outlook. A further decline is also expected for the current quarter.
In addition, Meta’s profit halved, mainly due to higher costs. Nevertheless, the company continues to invest a lot of money in the metaverse. That dream project of CEO Mark Zuckerberg consists of a virtual world in which people can do all kinds of business from their own homes.
The Reality Labs unit, which houses the project, has already suffered a loss of more than 9 billion dollars this year, and the losses will increase further in 2023, according to the company. Morgan Stanley analysts lowered its rating for the stock in response to the company’s disappointing results and outlook.