Shares of parent company Facebook fell to a record

 Shares of parent company Facebook fell to a record

On February 3, Meta's stock price fell 27%, causing the company's capitalization to evaporate $ 230 billion - an unprecedented level on Wall Street or Silicon Valley.

Meta's stock price plunged shortly after the news that Facebook's user growth appeared to have peaked as the social network added no more monthly users in the fourth quarter compared with the same period last year. Daily users also decreased slightly from the previous quarter.

Meta capitalization has evaporated 230 billion USD - an unprecedented number in the US stock market. This has led investors to ask a question that previously seemed unthinkable as the good old days are over for Facebook - one of the world's most widely held tech stocks.

The first quarter of 2022 revenue forecast also disappointed Wall Street. CEO Mark Zuckerberg's personal fortune is likely to drop by about $24 billion. He acknowledged that Meta is facing serious competition for user time and attention, especially from the TikTok app.

Facebook changed its parent company's name to Meta last year to align with its future development direction. The company's stock ticker will also be changed to Meta in the first half of this year.

In addition to problems with competitors, Facebook also has trouble with regulations. The giant said it is being influenced by a variety of factors, including privacy changes with Apple's iOS and macroeconomic challenges.

They blamed the lower-than-expected growth in part on inflation and supply chain issues affecting advertisers. There's also a shift towards products that don't generate as much revenue as its core news feed, for example people are spending more time on its Reels videos.

Zuckerberg said Reels is growing fast, but monetization is slow. He urges investors to be patient as the product develops.