Meta isn’t having its best moment. parent company owned Facebook, Instagram Y What’s up?Among others, it has seen how its stock market value has dropped as much as 58% so far this year, by far the worst drop. tech giants.
Currently, like other large companies in the industry view, microsoft, Amazon Y Google They’re worth more than a billion dollars. The commodity is worth less than half. Its market cap is $381.95 billion, which pushed it back into the top 10 most valuable companies in the world.
The problems of the biggest giant of social networks respond to several factors. On the one hand, the economic turmoil has reduced advertising revenue, which is one pillar of the business model. Added to this blow is changes to Apple’s privacy policies that allow users to opt out of tracking in order to serve personalized ads. On the other hand, the company has accumulated legal problems in both the United States and the United States. European Unionwhere the authorities accuse him of monopolistic abuse of power and also of harming the state sanity minors or public discussions. To all this we must add the increasingly fierce competition. TikTokIt’s a rising platform, especially among its youngest, that threatens to seduce this user base of Instagram and Facebook.
This mix of issues caused Meta to experience revenue declines for the first time in 10 years since the company went public. At the end of July, it announced a 36% decrease in its profits and a 1% decrease in its revenues in the second quarter of the year. As expected, his so-called ‘heavy investment in constructionvirtual universe‘ still doesn’t pay off: Reality Labs, division focused virtual reality increased and lost $2,800 million.
Zuckerberg lost his fortune
Meta’s problems particularly affected Mark Zuckerberg, who was its founder, CEO and largest shareholder, and the only one in the industry to have control over the company. According to the Bloomberg Billionaires Index, his net worth was $142 billion in September 2021 and his net worth is now $55 billion. This represents a collapse of more than 50% in just 12 months.
Zuckerberg has lost more than $71,000 million since the start of the year, a setback that put him from being the third richest man in the world to number 20. The accumulation of problems caused the company to experience a historic collapse. The price of its shares does not seem to have bottomed out for now. However, Meta will use this depreciation in court to avoid scrutiny by the authorities. Every cloud has a silver wall.
Source: Informacion
