Facebook parent company Meta plummets 26 per cent, loses $332 billion in worst one-day company drop
Its shares fell 26.4% after quarterly figures disappointed investors.
Meta also said that Facebook's daily active users (DAUs) had dropped for the first time in its 18-year history.
Through all the challenges Facebook has faced over the years, one thing has been constant - more and more people keep signing up, until now. Facebook lost daily users in the last three months of 2021, and its parent company, Meta, has just had its worst day ever on Wall Street.
Meta was not the only U.S. tech company to suffer on Thursday. Snap Inc., the owner of Snapchat; Pinterest, Twitter, PayPal, Spotify and Amazon all suffered sharp sell-offs during trading.
U.S. tech stocks are facing a variety of major challenges right now, including a possible economic slowdown, changes to privacy rules, increased regulatory pressure and competitive challenges that have pushed users — especially young people — to new platforms such as TikTok.
With Big Tech firms such as Apple and Microsoft ballooning in valuations over the past few years, they have also become more susceptible to investor whiplash, often resulting in losses worth tens of billions of dollars in a single day of trade.
Apple shed nearly $180 billion on September 3, 2020, while Microsoft lost $177 billion on March 16 the same year.