Record losses in the history of the American stock market for Meta Platforms, the new “umbrella” company of Facebook. Here are the reasons for the collapse.
Black Thursday for Facebook. Meta Platforms, the parent company of the rebranded social network label a few months ago, fell by 25% at the start of trading on the stock exchange. The company burned down over $ 220 billion in terms of stock value, a record for single-day losses in the history of the US stock exchange. CEO Mark Zuckerberg himself took the blow firsthand, seeing more than $ 28 billion vanish from his stake in the company.
Facebook leaks? Blame Apple and … –
As reported Varietythe collapse is an investor reaction to the slowdown in revenue forecasts in the first quarter, which in turn was due to two reasons in particular, according to Zuckerberg & co .: problems with the new policies Apple on advertising for iOS devices and TikTok’s rise in popularity in the social segment. The economic impact of Cupertino’s new measures, which limit the ability to target and measure advertisements through their applications, is estimated at $ 10 billion in 2022 alone.
TikTok terrible competitor –
While the former Facebook and now Meta tries to reposition itself as an active company in the metaverse (a one-time investment, for now, with operating losses already of $ 10.2 billion in the last year of the Reality Labs division), TikTok remains an incredibly tough opponent. to beat. “We face a competitor in TikTok which is much larger, so it will take a while to catch up, ”explained Zuckerberg. “People have a lot of choice in how they want to spend their time and apps like TikTok are growing very fast,” more than the American social media house budgeted. While it is true that TikTok is huge (it has more than 1 billion unique monthly users), many think that Zuckerberg is only using it to make governments and regulators understand that it does not have a monopoly position in the social media branch.
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