Facebook’s parent company Meta is in trouble!
Metaverse, formerly known as Facebook, suffered a huge loss on Thursday. The company’s stock took a nosedive, wiping out more than $200 billion, which culminated to a whopping 26%.
Zuckerberg on this dismal performance blames TikTok and has further warned about slow growth and earnings in the future.
The company’s performance was deemed abysmal by Wall Street claiming this to be the biggest single-day drop in the financial market. The report states that the company faces immense competition from TikTok. This is true as users flock towards the short video content creator app. Also, TikTok’s ad shares have quadrupled which has impacted not only Facebook but other applications under Meta’s umbrella.
Bloomberg reports that Mark Zuckerberg, whilst addressing his staff, stated that the company faces ‘unprecedented’ levels of competition from TikTok. However, this plummeting dip in the earnings was predicted. When TikTok rose to fame, Zuckerberg immediately started to work on a similar concept called ‘Reels’ on Instagram. The clone feature did get popular but even then TikTok ensued immense competition.
This is just the tip of the iceberg. Further condoning the performance, Facebook’s last quarter earnings showcased losing one million active users. Not only this, but the metaverse has lost a whopping $10billion on investments as well. Meta has already lost almost $240 billion valuations on Thursday. This loss has become the biggest wipeout ever seen in stock market history.
