Facebook capitalization

Yesterday, Meta's stock (formerly Facebook) fell on the Nasdaq in one of the largest single-day declines in market capitalization for a U.S. company.

Facebook, market value plunges

In fact, at the opening bell, the price suddenly plunged to $236 from Wednesday's closing price of around $322, before finally closing at $237.

In other words, in one trading day, Meta (FB) shares fell 26%.

The fact is that this stock has a market cap in the hundreds of billions of dollars, so while -26% may not be a record, it is definitely a market cap crash.

The market cap was $879 billion on Feb. 2 and plunged to $647 billion yesterday, for an overall loss of $232 billion in a single day. This has never been seen on the Nasdaq in the past.

To understand the real value of $232 billion, this figure is higher than the combined market value of companies such as L'Oreal, Verizon, Oracle, Accenture or Intel.

Instead, using cryptocurrencies as a reference, there are currently only two global market capitalizations over $232 billion (BTC and ETH), while the third is the $63 billion (excluding USDT) Coincoin.

Facebook has lost more than $200 billion in market cap today, which is larger than all cryptocurrencies outside of bitcoin and ethereum.

– the grand event (@APompliano) February 3, 2022

To reach $232 billion, you would have to add up the market capitalization of BNB, ADA, SOL, XRP, DOT, LUNA, DOGE, and AVAX.

That said, Meta's market cap loss yesterday exceeded the total market cap of the top eight global cryptocurrencies excluding BTC, ETH and stablecoins.

Facebook Facebook loses $232 billion in a single day The reason for Meta's collapse

The problem arises when the final financial results for 2021 are announced.

Not only did these numbers disappoint analysts' expectations, but more importantly, for the first time in its history, Facebook recorded a year-over-year decline in average daily active users.

The market is concerned about lower-than-expected results and the company's future prospects, which don't look particularly good.

In November, Facebook announced that it was changing its name to Meta and changing its perspective to begin working primarily on the metaverse. Unfortunately, this development proved to be slower than expected, while other companies operating in the metaverse are continuing to expand.

As a result, the future outlook for the group, which is surrounded by an increasing number of competitors, has deteriorated significantly, just as the stock price has moved.

Notably, there has been a negative trend since September 2021, seeing a cumulative loss of 38%, well over a third, after hitting an all-time high of $384 in early September.

The post Facebook: Biggest Daily Capital Losses Ever appeared first on The Cryptonomist.