After Facebook reported disappointing results for the fourth quarter, things have gone from bad to worse. First, its reports made investors shy away from investing in social media stocks affecting other companies before Snap earnings (and others) encouraged investors to continue to bet on social media stock.
That’s not all of Facebook’s troubles. The company also recently agreed to pay a $2 million fine in the UK over failure to meet certain aspects of the requirements that the Competition Markets Authority gave regarding Giphy. The company also mentioned that it was considering shutting down Facebook and Instagram in Europe over data sharing disputes.
Facebook, now known as Meta, has dropped from the top 5 most valuable companies in the US to the eighth position after it closed with a market capitalization below $600 billion on Tuesday. This is the first time this is occurring since 2020. The stock which fell 2.1 percent leaves the company’s market capitalization at $599.32 billion.
As of yesterday, Facebook was not only behind Tesla in Market cap, it was also behind Berkshire Hathaway and chipmaker Nvidia and above Visa which closed at $478 billion.
Nvidia is the company that recently ended its deal to acquire chip technology company Arm and would pay a breakup fee of $1.26 billion to Arm’s parent company SoftBank. Nvidia put an end to the deal amid hefty regulatory challenges, including a probe in the U.K. and a lawsuit from the U.S. Federal Trade Commission.
As of today, Meta had risen to 7th place after its market capitalization rose to $629.49 billion, according to CompaniesMarketCap. This shows that the company’s shares recovered slightly but it is still a long way from moving back to the top five again.
Amid many controversies and setbacks, Facebook still remains one of the phenomenal companies the world has ever witnessed.
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Ibhadojemu Lucky Emmanuel is a graduate of Education and Economics from the University of Benin. He has a passion for tech and business and has been writing professionally for over a period of five years. He's written across various topics and segments and knew tech-business was it when he first stumbled on it. He has a great passion for music and arts, and wants to visit as many countries as he can someday.
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