Mark Zuckerberg red-eyed, trying to reassure employees and shareholders after Meta stock “evaporated” a record $ 250 billion in just 1 day

Tram Ho

On February 3, the Facebook founder said that his red, teary eyes were the result of a scratched cornea, trying to calm the mood when the share price of Meta Platforms Inc. lost 1/4 of its value.

At a company-wide videoconference, Zuckerberg explained, the stock price drop was the result of Meta’s low revenue forecast for the current quarter. It’s important to focus on growing Facebook’s short video product, says Mark.

Zuckerberg repeated his remarks a day earlier to investors, telling employees how the social networking giant faces “unprecedented levels of competition,” with the rise of the internet giant. TikTok, the “viral” video platform of competitors. Meta’s Instagram app is currently developing a “clone” of TikTok called Reels, which is receiving priority from the company.

Meta employees are nervously watching the stock price. Facebook lost a record $251 billion in value in just one day. Some are discussing buying stocks at a discount, trusting Zuckerberg’s long-term vision for the metaverse. Others worry that the continuous drop in stock value may affect their wealth. Zuckerberg’s personal fortune fell by $31 billion.

Employee retention

Meta also conveys the message of policies to retain employees in the context of volatile stock markets.

Zuckerberg said the social media giant is thinking of extending the current weekend work break to three days to address “work burnout.” The Facebook founder also encourages exhausted employees to use their vacation days and adds, based on personal experience, that switching to a four-day work week won’t work.

Facebook employees, like many employees in the tech industry, tend to get paid well through stocks. Stock values ​​and annual bonuses are reached in March – both of which can be factors in an employee’s decision to quit.

The worst crash in stock market history

The one-day crash in shares of Meta Platforms, the parent company of Facebook, currently ranks as the worst in stock market history.

Shares of Facebook’s parent company fell 26% in Monday trading after reporting poor earnings results. In addition, the report also did not record monthly Facebook user growth in the previous quarter compared to the previous period, leading to concerns about the company’s future growth. Accordingly, about $251.3 billion in the company’s market value was blown away. This is the largest drop in market value for any US company ever.

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Source : Genk