Facebook’s disastrous day on the stock market

Meta (fka Facebook) now holds the record for the largest single-day loss ever by a US company

It said goodbye to $230 billion in value.

There are three big reasons why:

1. For the first time, Facebook’s daily active users went down by 1 million in North America – which is bad news because Facebook’s revenue per user is highest in North America. Basically, the kids don’t think it’s cool anymore and TikTok is taking people away.
2. Apple’s changes to allow users to prevent apps from tracking them is expected to cost Facebook $10 billion in revenue. If they don’t know where you are, what shops you’re visiting and who you’re spending time with, then their ads can’t be as targeted.
3. It’s also pouring money into the metaverse – spending $10 billion on it last year. But the metaverse is still just a VR concept that isn’t yet fully baked or ready for mass adoption.