9/27/2023 0 Comments Meta stock crashThe company’s second-quarter financial results were dismal, with reported revenue of $452m, down from $695m in the first quarter. According to the company: “The new ticker symbol aligns with the company’s rebranding from Facebook to Meta.” In May 2022, Meta Platforms announced it was changing its ticker symbol to ‘META’, replacing the previous ticker ‘FB’ which had been used since the company’s initial public offering ( IPO) in 2012. This was the first time that such a deceleration had occurred in many years, with shares falling more than 26%. The decline accelerated in November and peaked in February 2022 after management made downbeat comments about the company’s future growth, and after Meta Platforms reported a slight decline in Facebook’s daily active users (DAU) in Q4 2021. Meta Platform’s downtrend began in September 2021 when the pandemic tailwind that had lifted the business’s performance faded on the back of mass vaccinations. What should this social media stock expect, considering the current environment and the management’s plans to reshape its business model? In this article, we analyse the latest Meta Platforms stock news along with its price action and fundamentals to outline plausible META stock projections for 2022 and beyond. Meanwhile, macroeconomic conditions in the US have worsened amid a high inflation rate of 8.2% which has prompted a risk-off attitude among market participants. Meta Platforms, formerly known as Facebook, has cited multiple headwinds that could negatively affect the business’s financial performance in the near term, including changes to Apple’s iOS privacy features and increased competition from other platforms such as TikTok and Snapchat. The stock’s losses have mirrored those of the tech-heavy Nasdaq 100 ( US100) index, with confidence in tech markets having plummeted and Meta’s drastic pivot toward the metaverse having concerned shareholders. As of 2 November 2022, stock is changing hands at $92.77. After a mass sell-off in late October, stock sank 24% to the lowest price since 2016. Meta Platforms’ (META) stock performance has seen little respite in the bearish environment so far this year. Spotify has been beset by a row over COVID-19 vaccination misinformation and also released disappointing results.ĭon’t miss out on ET Prime stories! Get your daily dose of business updates on WhatsApp.Will META prevail against current headwinds? – Photo: Jirapong Manustrong/ Other social media stocks were also hit hard on Thursday, including Twitter, Pinterest and Spotify. In the past week purchases of large-cap tech have skyrocketed while speculative assets have seen very little demand. Investors seem to be becoming highly selective after the sector's record-breaking run in recent months.Īccording to research firm Vanda, purchases from retail investors in late 2020 and early 2021 were focused on expensive tech, EVs and so-called "meme" stocks. The disappointment over Meta's earnings and the subsequent stock fall invoked memories of the bursting tech bubble in 2000. Meta reported a decline in daily active users from the previous quarter for the first time as competition with rivals like TikTok, the video sharing platform owned by China's ByteDance, heats up. 3, 2020, while Microsoft lost $177 billion on March 16 in the same year. With Big Tech firms like Apple and Microsoft ballooning in valuations in the past few years, they have also become more susceptible to investor whiplash, often resulting in losses worth tens of billions of dollars in a single day of trade.Īpple shed nearly $180 billion on Sep. Short sellers in Meta were poised to increase their potential 2022 gains to more than $2 billion with Thursday's plunge, according to S3 Partners. The stock's drop was in addition a boon for investors betting on a decline in the company's shares. He called the trading declines "an overreaction." It was the guidance that spooked people," Jeffress said. "The results, taken in their entirety, were okay. Jeffress pointed to strong or increasing numbers Meta reported for user engagement, advertising and revenue per user. David Jeffress, portfolio manager at Laffer Tengler Investments, said on Thursday the firm is looking to add to its stake in Meta as the stock declines. Some portfolio managers also saw a reason to buy. It was also a popular stock for retail investors, who appeared to be enthusiastically buying the dip. Other institutional investors were also heavy owners. Meta was a widely held stock by various investor groups, including hedge funds, according to recent data, leaving a number of funds potentially exposed by the wipe-out in its shares. Their reports also sent Twitter up 8%, and helped Meta recover 1%. After the market closed, social media platforms Pinterest and Snap posted strong quarterly reports that sent their shares soaring 17% and 52%, respectively, more than reversing losses from earlier in the day.
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