Home High Tech The value of Meta (Facebook) plummets 60% this year

The value of Meta (Facebook) plummets 60% this year

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Goal not going through its best moment. The parent company that owns Facebook, Instagram Y WhatsAppamong others, has seen how its stock market value has plummeted up to 58% so far this year, being by far the worst drop among the tech giants.

Currently, other large companies in the sector such as Manzana, microsoft, amazon Y Google They are worth more than a billion dollars. Meta, on the other hand, is worth less than half. Its market capitalization is 381.95 billion dollars, which has pushed it back to number 10 of the most valuable companies in the world.

The problems of the biggest giant of the social networks respond to several factors. On the one hand, the economic turmoil has cut its advertising income, a pillar of its business model. Changes to Apple’s privacy policies, which allow its users to opt out of being tracked in order to be served personalized ads, have added to that blow. On the other hand, the company is accumulating legal problems both in USA like in the European Unionwhere the authorities accuse it of monopolistic abuse of its power, as well as harming the mental health of minors or public debate. To all this we must add the increasingly fierce competition from TikToka rising platform especially among the youngest that threatens to seduce that user base of Instagram and Facebook.

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That mix of problems has led Meta to suffer the first drop in revenue since the company went public 10 years ago. At the end of July, it announced a 36% decline in profits and 1% in revenues during the second quarter of the year. As expected, his hefty investment for the construction of the so-called ‘metaverse‘ is still not paying off: Reality Labs, its division focused on virtual reality and increased, suffered losses of 2,800 million dollars.

Zuckerberg loses his fortune

Meta’s problems have especially affected its founder, CEO and largest shareholder, mark zuckerberg, which maintains a control over the company that is unique in the sector. His net worth was $142 billion in September 2021 and his net worth is now $55 billion, according to the Bloomberg Billionaires Index. That represents a collapse of more than 50% in just 12 months.

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Since the beginning of the year, Zuckerberg has lost more than 71,000 million dollars, a setback that has taken him from being the third richest man in the world to falling to number 20. The accumulation of problems has led the company to suffer a historical collapse in the price of its shares that, for now, does not seem to have bottomed out. However, Meta would be using this loss of his worth in court to try to dodge the scrutiny of the authorities. Every cloud has a silver lining.

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