Meta Erases $251B in Value! The Biggest Wipeout in history!

image

The Facebook parent plunged 26% Thursday on woeful earnings results and erased about $251.3 billion in market value. That’s the biggest wipeout in market value for any U.S. company ever.

And while the stock could certainly bounce back in the coming days, especially given the volatility that’s gripped the technology sector this year, the mood on Wall Street has turned decidedly bleak on the long-time market darling.

Analysts point to the stiff competition that Meta now faces from rivals and that revenue was below expectations as causes for concern. Michael Nathanson, an analyst at brokerage Moffett Nathanson, titled his note “Facebook: The Beginning of the End?

Source: Bloomberg

What are you all planning/doing? Buying? Holding? Panic Selling?

2 Likes

While Vested trends say people are buying the dip!

image

1 Like

I believe that the decrease in Facebook engagement is due to the relaxing of epidemic restrictions, which let individuals to engage in more things outside of their devices.

1 Like

Feel someone interested should buy the dips of FB/META in fraction, there can be little more dips

the decrease in active users maybe there for a while to Facebook, based on the generation changes about interaction/sharing personal info in a particular social media platform they own (Facebook vs Instagram vs Whatsapp). To keep my point, having three different social interaction platform for engagement, while the attention is short spanned - it would see generational changes. I’ve not read the reports yet, however one should see the reports on QoQ basis here onwards and focus on how do they showcase their business revenue rather than attention span.

We should look forward to sales of Oculus, Metaverse development and Libra currency which would gain eventual attraction (for gaming) and we should hold or buy the dip. While Instagram/Whatsapp for Business, Mapillary, Onavo can continue contributing in revenue.

Who knows if an addictve game would appear in MetaVerse (for any generation) and you end up spending Libra coins :slight_smile:

4 Likes

Well, I feel that FB is fairly undervalued owing to its numbers; it’s a cash printing machine

It prints cash on par with the Federal Reserve… It’s agreed that numerics aren’t just the thing, but it is pretty undervalued according to the analysis out there

2 Likes

I agree that $FB is one of the most profitable cash-flowing companies. However, I see that nothing drives a story like pricing at this juncture.

What would you respond to opponents who suggest that $FB’s diminishing user growth and engagement, the lost struggle for young people, and breakdown in FB ad product efficiency are vital concerns indicating a cyclical decline?

I’m just trying to grasp better how they plan to deal with the existing difficulties.

I believe it is really too early to tell. This was the first quarter of a downturn, so we’ll just have to wait and see what happens in a year or two.

Also, while I believe Facebook has reached critical mass, I believe Instagram and WhatsApp are still highly popular and expanding.

I believe Facebook will become a cash cow that will feed straight back to shareholders, either via stock buybacks and dividends or through acquisitions of other firms.

1 Like

I’d be scared if Metaverse doesn’t work and I were a FaceBook stock holder…

1 Like

Many say Metaverse is a distraction for Facebook… Mark views Metaverse as an existential threat to FB… Idk not betting against Mark though

1 Like

Here’s the buy and sell volume extracted by the data team - People were buying the dip! Around $246,818 worth of shares were bought, whereas $6,925 were sold.

2 Likes