Facebook ("Meta") down 25% in a day

[Dunamisx]

• Apple recent privacy changes

Facebook has remained muted in giving further information on privacy policy and it implementation.

• For the first time ever, Facebook monthly active users remained flat and the daily active users decreased in the time period between Q3 and Q4

This is one of its greatest fear now, some say it loosing users due to the rush on tik-tok but metaverse remained controversial as Facebook tend to loose stand in the nearest future to metaverse and its meta is part of its own research towards metaverse.

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[Findingnemo]

Facebook is going to be the next Nokia?

Are we forgetting that billions of people worldwide are still using Meta Platforms' products lol? They literally just had a single bad quarter and people are already calling for their obsolescence lmao this can't be serious.

But losing 25% of their company value in few hours isn't not a joke though!

Anyway Facebook realized their platform is becoming ghost day by day that is why they moved to the futuristic vision so called metaverse which is still far from implementation hope it will save Mark and his co.

[paxmao]

According to the above link, Facebook stock plummeted 26%, I have not been following stocks but this is surprising.

This could be off-topic post, Facebook or Meta or what have you has pulled off from Diem or formerly called Libra project and sold it to Silvergate Capital Corporation

Mark Zuckerberg’s stablecoin project Diem officially shuts down
Vale Diem: How Facebook’s ambitious stablecoin project came to an end

Now, there is an opportunity if Libra or something similar comes out and their version of the metaverse works. Hint: They are going to have to reinvent themselves and face a fierce competition.

I totally agree to this if I get you correctly, Meta will not even only be for Facebook, life is competition.

Also off-topic post. About this Meta, I have seen signs of self-centeredness (never mind, I could be wrong), changing its name to Meta to create Metaverse.

The rebranding itself would have been meaningless if it not were accompanied by a declaration of Zucky saying that they will spend 10B in becoming the Metaverse company. Perhaps the declaration or the rebranding in standalone would actually not given enough confidence, let's see if they put the money where their brand is as promised (to themselves mostly).

If you think of it, there canno tbe an universe without a mean of exchange and some short of in-built economy. A tax on that (e.g. owning the coin) is a tax on growth in the purest W. Buffet style.

[lixer]

FB lost users for the first time and they heavily invested in the future of META which don't look like a good bet to me. All I see is a dead company which refuses to acknowledge its status. Companies rise and fall all the time. People cheered up a lot when Myspace died and FB took over... Guess what, FB is not invincible neither. Something else is killing FB. (Tiktok?) Paypal is also dying and leaving lots of sorry af bagholders behind.

There are too many of those overvalued companies in the markets. One down, many left.

That's weird if someone is happy with the fall of others but i think the one that is happy the most are the owner of the rival company because they can now finally won the competition but the users of the platform were sad because they cannot access their accounts again and it looks like the karma have finally come to facebook. They are now doing what they can to be able to save their beloved company.

They even changed its name because they think people will embrace it but it seems that it was still not enough. On the other hand I do not think paypal is also going to die because there are still users of it and bitcoin or cryptos is not yet accepted on most online stores.

[sana54210]

Facebook is going to be the next Nokia?

Are we forgetting that billions of people worldwide are still using Meta Platforms' products lol? They literally just had a single bad quarter and people are already calling for their obsolescence lmao this can't be serious.

Nokia was basically the only mobile phone people wanted to have at one time. I am not saying that Meta products will be gone or anything, all I am saying is that they do not have some sort of superpower that keeps them high. Facebook is used, that's true but it could be replaced by something else, instagram is used and I doubt it would be gone anytime soon but in the future, 5-10 years later, who knows?

Whatsapp is great, people still use it every single day, but who knows? Maybe in 10 years a better chat application will come out, I prefer telegram over whatsapp for example. All in all I have to say that there is a good amount of situation where we could see Meta going bankrupt, doesn't mean it will happen, it just means Meta is not untouchable.

[o_e_l_e_o]

People cheered up a lot when Myspace died and FB took over...

Say what you like about MySpace, but at least they never sold your data to third parties and governments and spent millions lobbying against privacy laws.

Whatsapp is great, people still use it every single day, but who knows? Maybe in 10 years a better chat application will come out

There's already a better chat application. It's called Signal. It does everything WhatsApp does and more, is free, open source, fully encrypted, supports voice and video calling, and won't spy on you or sell you out to governments like Meta will. Literally the only reason people ever give for not using it is because "All my friends use WhatsApp". So convince your friends to switch. Why would you willingly choose to be spied on?

[The Sceptical Chymist]

That's weird if someone is happy with the fall of others

It isn't weird at all if those "others" (like Facebook) are pure fucking evil incarnate.  Sure, that might be my overwrought opinion, but I know I'm not alone in holding it.  Even the inception of Facebook involved deception on the part of Mark Zuckerberg, hence the lawsuit against him by the Winklevii twins--and everything the company has done since then has been geared toward gathering data on people and working with the government to censor views that differ from those in power--just check out this video for one example.  Ugh.  Personally, I'm one of those who'd be happy if FB went belly up.

Say what you like about MySpace, but at least they never sold your data to third parties and governments and spent millions lobbying against privacy laws.

Word.  I can't remember exactly when MySpace lost the face to FB (and I'm too lazy to look it up), but I think it was just before mass data collection and selling of said data became an enormous issue.  But I can't imagine that if MySpace had emerged the winner of the duel that they'd have acted any differently; selling that data is tremendously lucrative, and neither MySpace nor FB were conceived out of charitable feelings, if you know what I'm getting at.

[magneto]

Not a good time for any tech stocks.

When interest rates are rising, there is a tendency for these companies to sink to the ground with their PE ratios.

I would say that they are pretty fairly priced, though. They still have some of the best employees out there and a vast abundance of information, so this could potentially be a good entry point for investors.

[mk4]

But losing 25% of their company value in few hours isn't not a joke though!

Lol obviously it's not good for them, but it's not as uncommon as you think.

Anyway Facebook realized their platform is becoming ghost day by day that is why they moved to the futuristic vision so called metaverse which is still far from implementation hope it will save Mark and his co.

You might want to look at the numbers instead of making assumptions: https://s21.q4cdn.com/399680738/files/doc_financials/2021/q4/Q4-2021_Earnings-Presentation-Final.pdf

The metaverse thingy sure is a huge bet, but they're definitely nowhere close to dying.

[Coin_trader]

Not a good time for any tech stocks.

When interest rates are rising, there is a tendency for these companies to sink to the ground with their PE ratios.

I would say that they are pretty fairly priced, though. They still have some of the best employees out there and a vast abundance of information, so this could potentially be a good entry point for investors.

Smart investors will surely view this as a good investment opportunity because at the end of the day, The company is still "Facebook" which pretty dominated the social media industry with all it's subsidiary social media apps company like tiktok and instagram. This 25% loss is just a result of the current economic weakness globally. I'm pretty sure they will bounce back strong as soon fear is already clear. Only facebook bashers will gonna celebrate about this minor down fall.

[andriarto]

Not a good time for any tech stocks.

When interest rates are rising, there is a tendency for these companies to sink to the ground with their PE ratios.

I would say that they are pretty fairly priced, though. They still have some of the best employees out there and a vast abundance of information, so this could potentially be a good entry point for investors.

Smart investors will surely view this as a good investment opportunity because at the end of the day, The company is still "Facebook" which pretty dominated the social media industry with all it's subsidiary social media apps company like tiktok and instagram. This 25% loss is just a result of the current economic weakness globally. I'm pretty sure they will bounce back strong as soon fear is already clear. Only facebook bashers will gonna celebrate about this minor down fall.

Even though Facebook's stock fell but Tik Tok users actually went up, even though it couldn't cover Facebook's decline, the decline in assets that occurred was very significant. but this is how the market is, with this decline there will certainly be a time for a bullish trend, so that in a short time an increase in assets can occur. I think this is a normal occurrence

[Lucius]

There's already a better chat application. It's called Signal. It does everything WhatsApp does and more, is free, open source, fully encrypted, supports voice and video calling, and won't spy on you or sell you out to governments like Meta will.

I wonder how long this will last, because the authorities do not like the fact that there is an app that is an ideal platform for secret communication of bad people (of course, eternally present terrorists) that they can not control. I sincerely doubt that such an app can exist in today's world without in some way cooperating with one of the most famous security agencies.

In case we go back and look at how the Signal was actually created (with whose money) then we see that these are the same people who have connections with FB or WhatsApp. I may be wrong, but if someone lends someone $50 million or even double that amount, that money must be returned somehow, of course with the corresponding profit. It reminds me of how the FBI tricked hundreds of criminals around the world with its anonymous app that was supposed to be secure and impenetrable.

[o_e_l_e_o]

The company is still "Facebook" which pretty dominated the social media industry with all it's subsidiary social media apps company like tiktok and instagram.

TikTok is owned by Chinese company ByteDance, not by Facebook/Meta.

I wonder how long this will last

It's existed since 2014 and is used by millions of people in hundreds of countries. Fortunately, it is beyond the scope of a single government to shut it down.

It reminds me of how the FBI tricked hundreds of criminals around the world with its anonymous app that was supposed to be secure and impenetrable.

All the more reason to be using an app which is open source and community developed such as Signal, as opposed to a closed source proprietary app like WhatsApp.

[TheNineClub]

What's interesting (and bizarre at the same time) is that META real estate prices are going up. If that's not proof that we live inside a simulation, I don't know what is XD. It seems to me that FB is just getting overrun by competition that is appealing to younger generations. I mean, FB always seemed like it's meant for the older generation, even tho it overthrew MySpace, it did at a time when MySpace users got older and grew away from that platform onto the next one that actually brought together not just people from the previous platform, but also people that never got into it in the first place. Now FB is facing a similar situation, it's just getting outgrown by its users.

[Leviathan.007]

Can't really call it price drop if you look at the chart in the long term because if you check it during the last 10 years of the market you will see this can be considered just as a little break, so that's not a big deal for the long term investors and the price movement is still uptrend in longterm but in the hand, the price did a sharp movement to lower price level I would say the Meta-metaverse  can be the reason for it there should be a relation between these two, but the most interesting thing for me during these price movements in centralized markets is no matter if you are talking about a big market like Facebook or small market like a newcomer altcoin there is still the chance for both cases to lose the price sharply only in one day.

[adaseb]

The reason why stocks like Netflix, Snap, Facebook, Amazon are trading like altcoins these days where they have 20-30% days which is unheard of in the stock market world is due to the VIX and liquidity.

VIX is just the volatility index. When stocks go down, they go down faster than they go up. So this is related to liquidity. When VIX is up the liquidity is down. Which is not ideal. Because there are less bids and more offers and we got these crazy 25% down days.

[lumbanrang]

IMO, the most plausible reason related to the losses experienced by Meta and Facebook is the increasingly competitive and innovative competitors such as TikTok and the privacy policies implemented by Apple.

And for now, the reason why quite a lot of people are selling their Meta shares is that the "hype" of the Metaverse has disappeared and not many people are interested in getting into this world of Metaverse. And also what Meta displays on their platform does not match the expectations of the users, so many people are disappointed.

Currently, most Meta investors are looking at this platform in the long term because of course the Metaverse technology will evolve. And it is estimated that Meta stocks will be heavy to rebound shortly (https://www.forbes.com/sites/sergeiklebnikov/2022/02/03/facebook-faces-an-existential-moment-after-230-billion-stock-crash/?sh=7e4e7906359b).

[savetheFORUM]

losing 25% of their company value in few hours isn't not a joke though!

Anyway Facebook realized their platform is becoming ghost day by day that is why they moved to the futuristic vision so called metaverse which is still far from implementation hope it will save Mark and his co.

Personally, I still feel that Facebook is doing well. Currently there is no social media platform that we can say is bigger than Facebook, because these guys own all the big names that you hear in social media space, which includes Instagram, WhatsApp, and Facebook itself. All these three social media platforms combined pulls a greater weight and is bigger than every other social media platform so far.

Having a bad market day isn’t something so serious, because it does happen. In every business there are times that they do experience loss, but as time goes on it picks up immediately. So that Facebook is losing 25% today doesn’t mean that they won’t be recovering the next day or so. So this doesn’t seem like a big deal to me.

[michellee]

losing 25% of their company value in few hours isn't not a joke though!

Anyway Facebook realized their platform is becoming ghost day by day that is why they moved to the futuristic vision so called metaverse which is still far from implementation hope it will save Mark and his co.

Personally, I still feel that Facebook is doing well. Currently there is no social media platform that we can say is bigger than Facebook, because these guys own all the big names that you hear in social media space, which includes Instagram, WhatsApp, and Facebook itself. All these three social media platforms combined pulls a greater weight and is bigger than every other social media platform so far.

Having a bad market day isn’t something so serious, because it does happen. In every business there are times that they do experience loss, but as time goes on it picks up immediately. So that Facebook is losing 25% today doesn’t mean that they won’t be recovering the next day or so. So this doesn’t seem like a big deal to me.

Indeed. The losses for Facebook are not a big deal because the Facebook team will try their best to recover from the down. And as a big company, maybe Facebook is already researching why that can happen because their team will make sure that nothing worst happens to them.

After all, Facebook is still a big company that will not let anything stop them from achieving what they want. Facebook can handle those things and recover their losses so there is nothing to worry about.

[AicecreaME]

~

May I add a bit of information regarding this drop - it mostly boils down to two (huge) factors (that I'm aware of):

• Apple recent privacy changes[1] - Facebook business model is all around advertising and sell you what you need / want. If they are no longer able to track you - which was something that Apple implemented by allowing their users to select if they want to be tracked or not[2];
• For the first time ever, Facebook monthly active users remained flat and the daily active users decreased in the time period between Q3 and Q4[3]. Since Facebook wants to grow and attract new users whenever it can (again, to fuel their business model), investors saw this as perhaps a warning that Facebook may not grown as expected in the upcoming times.

I'm a bit skeptic regarding the recent project that Meta has entered - the so called metaverse - and how it will pay out in the future. They already spent $10 billion[4] on it and I'm unsure how they wider audience will embrace this kind of technology. I guess it remains to be seen...

PS: This drop in price is also considered the biggest wipeout in US corporate history - In one single day $240 billion[5] simply were erased from the company stock value...
[1]https://www.nytimes.com/2022/02/03/technology/apple-privacy-changes-meta.html
[2]https://www.nytimes.com/2021/04/26/technology/personaltech/apple-app-tracking-transparency.html
[3]https://techcrunch.com/2022/02/02/facebook-isnt-growing-anymore/
[4]https://www.nytimes.com/2022/02/02/technology/meta-facebook-earnings-metaverse.html
[5]https://www.businessinsider.com/meta-q4-earnings-largest-ever-one-day-wipeout-190-billion-2022-2

So this could be one of the reasons why Facebook stocks has dump massively the past days. I just learned about the apple issue today, but I already foreseen the possibility that facebook would go downtrend because it is having a hard time staying relevant nowadays that there are already more social media platforms blooming as well as other means of entertainment for the youth and adults to enjoy. I really think it is one of the major reasons why Facebook's stock is declining aside from the usual dump they experience way back. Right now, a lot of competitive and enjoyable applications have been surfacing and most people really patronize it. The number of active users and new users aren't really going up because they are already diversified in other platforms that could keep them entertained and at the same time, updated. I bet Facebook have also predicted it is going to happen in the future which in this case is now. That is why they decided to rebrand the name to Metaverse and have so much plans about projects about it in the future at hand. This could be their way to stay relevant despite the competition and maybe to garner more users in different brackets. I also don't have any idea how Metaverse would work in the future but I hope it's good enough to sustain the economy of Facebook.