Shares of Facebook parent Meta slid for a fourth straight session, with a steep drop over the past week that has put the company behind chipmaker Nvidia in market value.
Meta shares fell 2.1 percent to close at $220.18 on Tuesday. The stock is down 35% so far this year and is now at its lowest level since July 2020.
Not long ago, Meta joined Apple, Microsoft, Amazon, and Alphabet among the five most valuable companies in the United States. However, Meta has now fallen to eighth place, behind Tesla, Berkshire Hathaway and Nvidia.
On Tuesday, Meta’s market cap fell below $600 billion to $599 billion for the first time in 2020, while Nvidia rose to $627 billion. Visa is close behind with a market cap of $478 billion.
Nvidia previously announced that it would abandon its acquisition of chip technology company Arm and would pay Arm parent SoftBank a $1.26 billion breakup fee. Nvidia called off the deal amid significant regulatory challenges, including an investigation in the U.K. and a lawsuit by the U.S. Federal Trade Commission.
Shares of Nvidia rose 1.5% to $251.08 on Tuesday, having rallied for the past two years, surging more than 300% since the start of 2020. But it has lost about 15% of its market value since the start of the year as investors sold risky tech stocks.
Nvidia will report fourth-quarter earnings next week, boosted by strong chip sales as its graphics processors are in high demand for artificial intelligence applications and advanced video games.
On the other hand, Meta shares have been falling since last week’s fourth-quarter earnings report. The company showed a drop in user numbers and warned of challenges posed by Apple’s privacy changes. Meta’s first-quarter earnings forecast fell short of market expectations, causing the stock to plunge 26% last Thursday, the most in U.S. stock history.