US Stocks

Why has Facebook stock plunged?

Facebook’s $230bn fall has set a record for the largest one-day value drop in stock market history.

Shares in Facebook’s parent company Meta (NASDAQ: FB) fell 26.4% on Thursday after the social media giant reported its first-ever drop in daily user numbers in its Wednesday earnings report.

Meta’s stock fall marked the biggest slide in market value for a US public company.

Mark Zuckerberg said the firm’s sales growth had been hurt as audiences, especially younger users, had left for rivals such as Tik Tok.

Shares in other social media platforms, including Twitter, Snap and Pinterest, also fell sharply in extended trading.

Facebook rebranded to Meta last year. The company has shifted its focus on virtual and augmented reality segments to build the foundation for what they call the Metaverse over the next few years.

At the time of writing, the Meta Platforms Inc stock is currently trading at $237.76, a 28% drop in 24 hours.

Not Investment Advice Indie Investor is for general information use only. It must not be relied upon by readers when making (or not making) their investment decisions. If in doubt you should seek advice from a professional financial adviser.

Join the conversation