The stocks of other social media companies including Twitter and Snap also fell.

The fall of Meta’s stock helped yank other tech stocks lower on Wall Street on Thursday, abruptly ending a four-day winning streak for the market. On a Wednesday call with investors, Zuckerberg said he was “proud” of the work the company had done last year but acknowledged the company faced tough competition for attention from rivals including TikTok. “Meta CEO Mark Zuckerberg may be keen to coax the world into an alternate reality, but disappointing fourth-quarter results were quick to burst his metaverse bubble,” said Laura Hoy, an equity analyst at Hargreaves Lansdown. Meta also reported a rare decline in profit due to a sharp increase in expenses as it invests in the “metaverse”. © 2023 NYP Holdings, Inc.It was a disappointment for a company that investors have become accustomed to delivering spectacular growth. “I’m pleased with the momentum and the progress that we’ve made so far and I’m confident these are the right investments for us to focus on going forward,” Zuckerberg added. Zuckerberg told investors the company’s vision for a fully realized metaverse is “still a ways off,” though he expressed optimism about its eventual impact on Meta’s business. Mark Zuckerberg’s on-paper fortune declined to an estimated $85.1 billion. The company’s Reality Labs division - the segment responsible for building its version of the so-called “metaverse” - lost more than $10 billion in fiscal 2021 as Meta ramped up investments. Meta topped expectations for revenue with $33.67 billion in fourth-quarter sales, but missed the mark on earnings. “People have a lot of choices for how they want to spend their time and apps like TikTok are growing very quickly,” Zuckerberg said during an earnings call on Wednesday afternoon. Zuckerberg blamed the downtick in user activity in part on increased competition from rival platforms such as TikTok. Facebook reported a quarterly decline in daily users for the first time in its history. The unprecedented decline in Facebook’s average daily users headlined a weaker-than-expected earnings report. The social media giant late Wednesday reported the first quarterly decline in its user base in company history.įacebook reported 1.929 billion daily users in the fourth quarter, down from 1.93 billion users the previous quarter.

Meta shares fell by more than 26% on Thursday to close the day at $237.76 each - wiping off about $232 billion in value, which was the largest one-day drop in market value of any stock in US history, Dow Jones reported, citing its market data. The Facebook founder’s personal net worth dropped approximately $29.7 billion on Thursday, according to Forbes’ real-time calculations.īy the end of trading, Zuckerberg’s on-paper fortune was estimated to be $84.8 billion, knocking him out of the Top 10 among the world’s richest individuals. Mark Zuckerberg has more than one reason to cover his eyes after his Facebook shares suffered a historic selloff in trading Thursday. Meta turned a blind eye to millions of underage Instagram users, lawsuit claims Meta downplayed rampant spread of self-harm images among teen Instagram users: lawsuit Facebook, Instagram expose child users to sex predators, porn: AG’s bombshell suitĮx-Harvard scholar claims she was ousted for pointing out Facebook’s ‘digital harms’

Zuckerberg staff meta stock plunges