It’s only February, and the company formerly known as Facebook has already managed to lose $240 billion in market capitalisation. This is due to a few reasons, the main one being the fact that Meta’s golden child – Facebook – managed to lose around one million active users in one quarter in 2021.
In total, Meta’s managed to discard around 40% of its market share value year-to-year. Zuckerburg’s also felt it in his pockets. “Meta CEO Mark Zuckerberg’s personal net worth has also taken a hit: He’s currently worth $78.8 billion, down more than $46 billion from the beginning of the year,” Business Insider reports.
Meta’s slippery slope
This all means the company has steadily been sliding down the ranks and doesn’t sit in the world’s top ten most valuable company list. Currently, Meta’s the world’s 11th most valuable company with a market cap of $565.4 billion, just behind Tencent that’s currently at number ten.
It used to be in sixth place.
The company has some catching up to do if it plans to take on its trillion-dollar Silicon Valley counterparts. But all’s not lost – Meta/Facebook is still considered one of the most valuable companies in the world. But this stark drop in share price could prove detrimental to its future growth.
Of course, this news follows a string of recent events that could have affected Meta’s share price. Things like it killing off its Diem cryptocurrency plans, increased trouble in the EU and pulling its ExpressWiFi initiative from Africa. It hasn’t been a great year for Meta and it’s only February.
