Meta stock hit the bottom, removed from the top 20 largest companies in the world, the decline shows no sign of stopping

Tram Ho

At the beginning of the year, Meta’s capitalization was 1 trillion USD, now this figure is only 258 billion USD.

Cổ phiếu Meta chạm đáy, bị loại khỏi top 20 công ty lớn nhất thế giới, đà giảm chưa có dấu hiệu dừng lại - Ảnh 1.

Meta Platforms shareholders are paying a heavy price for Mark Zuckerberg’s plan to join the metaverse: The market value of parent company Facebook has been evaporated in children. a record number of USD 677 billion this year, making them excluded from the ranks of the 20 largest companies in the world.

It is worth mentioning that this decline shows no sign of stopping in the near future. . Shares of Meta fell as much as 25% after surprising investors with a high-cost earnings report, largely due to heavy spending on virtual reality and a drop in revenue.

Meta was the sixth-largest US company by market capitalization at the start of the year, with a market value of $1 trillion. However, after only 10 months, the company’s value is only about $ 258 billion, ranked 26. Their market value is now smaller than a series of companies including Chevron Corp., Eli Lilly & Co. and Procter & Gamble Co.

Cổ phiếu Meta chạm đáy, bị loại khỏi top 20 công ty lớn nhất thế giới, đà giảm chưa có dấu hiệu dừng lại - Ảnh 2.

Once the darling of Wall Street, Meta is slowly losing its favor with brokerage firms. At least three investment banks – Morgan Stanley, Cowen and KeyBanc Capital Markets – have downgraded their stock ratings after the company gave a disappointing quarterly earnings outlook.Mandeep Singh “Meta remains overly aggressive with investments in long-term initiatives despite a sharp drop in projected revenue growth,” said an analyst at Bloomberg Intelligence. That said, while shares fell sharply on Thursday, that’s still nothing compared to a record 26% drop in February when Meta reported disastrous results, blowing away $251 billion. capitalization in 1 day. That’s the biggest drop in market capitalization for any U.S. company ever.

Meta stock’s steep decline this year has also attracted some “bottom-fishing” investors. , hopefully change in the future. However, there is little sign that that bet will succeed any time soon.

Meta announced its move to investing in virtual reality a year ago, along with a company name change from Facebook Inc. to Meta Platforms. The company said Wednesday that it expects total costs for this year to be $85 billion to $87 billion.

For 2023, that number will grow to $96 billion to $101 billion. USD. “This is extremely negative news, as investors expect Meta to cut costs aggressively,” said Neil Campling, an analyst at Mirabaud Securities.

For his part. , CEO Mark Zuckerberg still believes absolutely in the bet with the virtual universe. During the business results meeting on Thursday, he affirmed that he will pour billions of dollars more to develop the virtual universe despite the worries of the current decline in revenue of investors.

In its statement, Meta said that it recorded the loss of the virtual universe segment and predicted that this loss would increase in the near future, but the group will still invest money in technology. above to achieve its long-term goals.

Jefferies expert Brent Thrill says Meta seems to be taking a gamble as it neglects the core profit-making business of the business. business, while the mainstream investment channel is losing money.

“I think it’s important to distinguish between something being tested and a new technology that will actually succeed in the future. . However, in general, we are still working on many areas and are quite confident that we are doing well,” countered CEO mark Zuckerberg, citing that they are still doing well through improving the short video service Reel, content algorithms, business messaging and online advertising technology.

The CNBC news agency said the Facebook founder could not confirm how much money he would pour or the size of the “soup” silver” will be like this, but new technology is being gradually upgraded in the right direction.

“Clearly, the virtual universe will be the long-term plan that we aim to… This technology will eventually succeed,” CEO Mark Zuckerberg affirmed.

Source: Bloomberg

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