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‘Train Wreck’: Wall Street slaps Facebook after market value drops $700 billion

Facebook (now known as Meta) has suffered a $700 billion decline in market value since peaking at more than $1 trillion in September 2021. An analyst has called the company’s dismal results and its future “sinking” strategy.

CBS News reports that Facebook has taken a huge risk in its pivot to a virtual reality metaverse over the past year, a move that doesn’t seem to be working out well for the Masters of the Universe.

Mark Zuckerberg Meta Selfie

Facebook shares continued their downward trend through 2022, plunging more than 24% in morning trading on Thursday after a weak fourth-quarter forecast that came with much lower third-quarter earnings expected earnings on Wall Street.

Facebook is currently facing a number of issues, such as a slowdown in online ad spending, the negative effects of Apple’s iOS 14 app tracking transparency feature, and increased competition from other platforms such as than the Chinese video app TikTok. This has led the company to post consecutive quarters of revenue declines, with a third straight drop expected in the fourth quarter.

While the company’s revenue fell 4% in the third quarter, Facebook’s costs and expenses rose 19% year-over-year to $22.1 billion. Operating profit fell 46% from a year earlier to $5.66 billion.

A Wall Street analyst described news of Facebook’s latest earnings report as a “train wreck.” Facebook’s current state is a far cry from its position in September 2021, when it was valued at over $1 trillion.

Facebook shares are now down 67% from a year earlier, translating into a massive loss of around $700 billion in market value. The company’s market value is now around $268 billion, about a quarter of its $1 trillion value in 2021.

“Last night’s Meta results were an absolute train wreck that speaks to the pervasive digital advertising slump ahead for Zuckerberg & Co. as they make the risky and head-scratching bet on the Metaverse,” Dan said. Wedbush analyst Ives in a report.

But on a conference call Wednesday to discuss the company’s latest results, Zuckerberg told investors he was “pretty confident it’s headed in the right direction.”

At least somebody is.

Read more from CBS News here.

Lucas Nolan is a reporter for Breitbart News covering free speech and online censorship issues. Follow him on Twitter @LucasNolan


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