The Hustle

Why did Meta lose $200B+ in value?

Meta is facing many challenges: stalling growth in its user base, the rise of TikTok, and Apple’s new privacy changes.

The phrase “Big Tech” commonly refers to Amazon, Apple, Google, Microsoft, and the artist formerly known as Facebook (Meta).

The moniker may have to change: Meta had its biggest one-day drop ever, falling 20%+ and losing $200B+ of market value.

What happened?

The sell-off came after Meta’s latest earnings report, per CNBC:

Meanwhile, Facebook’s daily users — 1.93B — declined from the previous period with attention moving to other platforms, namely TikTok.

Can Meta come back?

Nikita Bier — a former Facebook exec whose startup was acquired by the social network — highlights the challenges in a viral Twitter post:

Further, Meta’s big bet on the metaverse…

… will take 10 years to play out

Bier does say that Zuck is the “greatest operator” in the world. He’s also the only founder left running a Big Tech firm, putting him in the driver’s seat — with full control — to pivot the company.

In the meantime, though, Meta (worth ~$670B) may have to be downgraded from “Big Tech.” Why? All the other firms are worth at least $1.4T.

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