In the US stock market, the parent company of Facebook has suffered a dramatic drop in its stock price value by 26.4% after announcing a decrease in number of daily users, British news portal The Guardian reports.
The turbulence on Thursday, February 3, in Meta came amid concerns about its future after the company reported its first ever drop in daily user numbers in its Wednesday, February 3, earnings report. Facebook rebranded to Meta in 2021 as part of its strategic transition to becoming a virtual-reality based company. The company’s advertising model has also been hit hard by privacy changes at US tech company Apple, which Facebook has said it expects will cost them billions.
Read also: Facebook parent company rebranded to new name
The drop in stock price has sent the personal wealth of Meta chief executive officer Mark Zuckerberg tumbling by nearly USD 30 billion (EUR 26.3 billion). Meta’s stock fall marked the biggest slide in market value for a US public company, according to Reuters news agency’s analysis of Refinitiv data.
The fall of Meta’s stock price contributed to lowering tech stocks lower on Now York’s Wall Street on Thursday, abruptly ending a four-day winning streak for the market. The price of stocks of other social media companies, including Twitter and Snap, also decreased, The Guardian reports.
Facebook parent company’s stock price drops by 26.4% in one day
