Meta Platforms registered the steepest one day drop in market value ever for a U.S company. The shares of the company shed over one-quarter of their value in Thursday’s trading; Meta stock lost $232 billion in market capitalization.
Meta’s (ticker: FB) drastic fall surpassed Apple’s (ticker: AAPL) record that was initially set on the 3rd of September 2020, a time when the iPhone maker’s stock lost $182.4 billion in value, according to Dow Jones Market Data. Previously, the largest one-day market cap decline for Meta was on July 26th 2018, when the company- Facebook at the time- lost $119.2 billion in value.
The Hard Fall
On Thursday, Meta stock was on track for the largest single-day drop in market value for a publicly-traded firm.
|Company / Ticker||Date||One-Day Market|
Cap Change (Bil)
|Meta Platforms / FB||2/03/2022||-$210.0*|
|Apple / AAPL||9/03/2020||-$182.39|
|Microsoft / MSFT||3/16/2020||-$178.06|
|Apple / AAPL||3/16/2020||-$156.47|
|Apple / AAPL||9/08/2020||-$141.13|
|Tesla / TSLA||11/09/2021||-$140.03|
|Amazon.com / AMZN||7/30/2021||-$137.92|
|Facebook / FB||7/26/2018||-$119.17|
|Apple / AAPL||3/12/2020||-$119.01|
|Apple / AAPL||12/16/2021||-$115.50|
|Microsoft / MSFT||3/12/2020||-$110.82|
*Preliminary, as of 11 a.m.
Sources: Dow Jones Market Data; FactSet
With the stock being down 26.4% to $237.60 at the close, shares registered the biggest percentage decrease since the company went public in may 2012. By the late afternoon, more than 173 million shares of Meta Platforms had exchanged hands- the highest exchange day since 2013. Meta stock registered the worst performance in the S&P 500, registering a loss of more than double that of the next contender, Xylem (ticker: XYL), which dived 12%.
The Unfriending of Meta
The decline followed a disastrous earnings report and outlook for the social-media firm as it looks to reinvent itself as the “metaverse” company. However, such grand ideals are more branding than reality, and a weaker-than-expected advertising forecast is of far greater concern to investors right now.
In intraday trading, Meta dropped to a market capitalization of $664.8 billion, behind Warren Buffet’s Berkshire Hathaway (ticker: BRK.B) at $707.8 billion. This fact secured the seventh slot for Meta on the ranking of the largest U.S companies by market capitalization.