According to reports, Facebook’s parent company Meta closed down 26% per share today, setting the largest drop in market value in the history of the U.S. stock market, dropping more than $237 billion in market value. This also triggered a collective slump in social media stocks, putting the broader market under pressure.
As of the close, the Dow fell 1.45% to 35111.16 points; the S&P 500 fell 2.44% to 4477.44 points; the Nasdaq fell 3.74% to 13878.82 points, the biggest one-day drop since June 11, 2020. Meta is equivalent to evaporating a Disney or two Goldman Sachs in one trading day, and the personal wealth of the company’s founder and CEO Mark Zuckerberg has also shrunk sharply as the company’s stock price plummeted.
According to Forbes’ real-time billionaire list, Zuckerberg’s personal wealth has shrunk from a peak of $134.5 billion in October 2021 to the current $84.8 billion, and his personal wealth has decreased by $49.7 billion.
Affected by the sharp decline in stock wealth, Zuckerberg has fallen out of the top ten of the Forbes rich list and is currently ranked 12th. The analysis pointed out that, as one of the tech giants, Meta has always been one of the cornerstones of confidence in the U.S. stock market.
After the market sells Meta in a panic, what needs to be figured out is whether the problem lies in the Metaverse business or the overall problem of the tech giants. According to the financial report for the fourth quarter of 2021 released recently, the “Reality Lab” division of Meta Metaverse business will have an operating loss of more than 10 billion US dollars in 2021.