Meta shares recorded a 13.4% loss last week, approaching the lowest level recorded during the Covid-19 pandemic.
The shares of Meta, the parent company of the Facebook and Instagram platform, fell, to close with losses that brought it yesterday to touch $ 146.29, the lowest level since March 2020, after having recorded levels below that for a short time before recovering some recovery.
big drop
Meta has lost 61% of its value in the past 12 months, in what is the largest decline in the shares of a major technology company, after briefly reaching fifth place among the largest US companies in the corporate club since trillion dollars last year, according to data from Market Watch, it became part of the 4 big tech companies: Apple, Microsoft, Alphabet and Amazon.
However, Meta shares fell significantly this year, due to concerns about competitive dynamics in the market and concerns about advertising revenue.
Loss of over $ 500 billion
With this, Meta has lost its $ 1 trillion market value by more than half, allowing many companies to leap forward and surpass it.
And since the company officially changed its name to Meta last October, the news for the company has almost all been negative.
Apple’s iOS privacy update made it harder for the company to target ads, and TikTok’s rival popularity on social media drove users and advertisers away from Facebook.
The economic slowdown has also impacted many companies that have withdrawn their Internet marketing spending.
Meta first disclosed financial data for its Reality Labs division in its fourth quarter 2021 earnings report in February of this year, according to CNBC.
The Reality Labs division recorded huge and growing losses that cost the company over $ 10 billion in 2021 alone, and the division’s net loss from 2019 to 2021 was over $ 21.3 billion versus revenues of nearly $ 4. billions of dollars.
The 2021 losses are in line with last year’s Zuckerberg forecast and losses are likely to increase this year, putting a strain on Meta’s overall profitability.
The company was expected to generate more than $ 56 billion in full-year profits if it weren’t for its metaverse research division of Reality Labs.
Mark Zuckerberg is lost
Commenting on this, one of the Harvard University experts and former CEO of the medical technology company Medtronic, Bill George, says that Mark Zuckerberg “continues to derail” Facebook, “has lost his way,” as he described it.
“I think Facebook isn’t going to do very well with Zuckerberg staying in place,” George told CNBC Make It.
George points out that presidents who lose sight of their beliefs, values and goals due to money, fame or power are doomed to fail.
After decades of researching why big companies fail, George says he sees a lot of similarities with Zuckerberg and Meta today.
He likened George Zuckerberg to a bad leader who doesn’t take responsibility for his decisions and blames others, for example Meta lost over $ 232 billion of its market value in February, which is the biggest one-day drop for any. US action in history.
Zuckerberg and his executives then blamed several factors, including the privacy changes to Apple’s operating system that made it difficult to target ads to smartphone users, as well as increased competition from companies like TikTok.
These factors may have played a role, but the enormous R&D expenditure in the world of metaphysics cannot be overlooked as a significant factor as well.
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