Meta just had its worst day in the stock market, on track to erase more than $200 billion

It has been one of the worst days for Facebook parent Meta Platforms Inc, as it just suffered one of the worst crashes in stock market history. The company’s stock plunged 24 percent in US trading Thursday, which could be attributed to the poor earnings results. This plunge has put it on a track to erase more than $200 billion.

At the current levels, this is the biggest collapse in market value for any US-based company. While that is one side of the story, there is no certainty that the loss will hold, considering the recent volatility across technology shares. Also, we got to see trade volumes grow in the final trading hours, which could be the buy-the-dip traders.

Analysts have a bleak outlook of the stock, pointing out in their assessments that Meta currently faces stiff competition from rivals like Tiktok and revenue was far lower than expected.

Meta’s current decline is more than the market value of about 470 of the S&P 500 members. The sheer size of the collapse showcases how tech companies have ballooned in size to gather unprecedented market power. Such falls will cause a lot of people to lose their money.

Meta traded at $245.72 as of 10:13 AM in New York, down from $323 on Wednesday. Apart from this, Twitter, Snap, and Pinterest all traded lower putting pressure on the Nasdaq 100 Index. As of the market close, Meta’s market cap stood at roughly $900 billion.

This is not the first time we are getting to see a major decline in the value of Meta stock. To recall, back in 2018, the Facebook stock plunged 19 percent due to a slowdown in user growth. This led to a $120 billion decline in market capitalization. At the time, this plunge set a record for the largest-ever loss of value in one day for a US-traded company.

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