Meta Platforms, the oddly named parent of Facebook, posted its worst earnings in memory. Its shares now trade at $162, down from a 52-week high of $384.33. Its current market cap is $450 billion, which means more than $500 billion of value has been wiped out in less than a year.
The primary victim of this drop, financially, is CEO Mark Zuckerberg who owns a large number of shares, and a controlling interest in the stock. However, he is still worth $62 billion. He does not need any extra money. Many of his shareholders do.
The earnings report was unprecedented. The FT reported: “Meta has blamed macroeconomic pressures for its first year-on-year quarterly revenue decline and offered investors a gloomy outlook for the coming months as advertisers pull back on spending.”
Investors need to live with the fact that Meta’s results will not get better for several quarters or longer. Recessions almost always hammer the advertising industry. And, Facebook has formidable competition in Google and Amazon.
In the most recent quarter, revenue dropped 1% to $28.8 billion. Net income fell 36% to $6.7 billion.
Meta had already lost its way, well before earnings. The company states: “Meta builds technologies that help people connect, find communities, and grow businesses.” In reality, it is nothing more or less than the world’s largest social media company. As such, it has been attacked by governments and organizations as both a monopoly and a platform for misleading and hateful communications.
No matter what Meta is, there is something it is not; after decades of expansion, it is no longer a growth company.
100 Million Americans Are Missing This Crucial Retirement Tool
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.