If you think your day has been rough, at least you’re not Mark Zuckerberg. On Thursday, Mark Zuckerberg saw his net worth decline by nearly $30 billion. I sweat when I misplace a $20 bill, so I can’t fathom losing $30 billion in a single day. There’s only one other man who has lost more money in one day, and that’s Elon Musk. In November, Musk lost $35 billion in a single day when he tweeted about selling 10% of his Tesla stock.
So why did Zuckerberg lose so much money? After Meta reported fourth quarter earnings, their stock tanked. The company lost more than $237 billion in value on Thursday and plummeted nearly 27%–an enormous shock to investors. The stock market in the US has never seen such a steep loss in value in one day.
The $237 billion loss comes as the company looks beyond enterprises such as Facebook, Instagram, and WhatsApp, and looks towards the metaverse. According to Zuckerberg, Meta’s investment in the metaverse resulted in a $10 billion loss in 2021.
Meta’s woes are in strong juxtaposition with other tech companies such as Snapchat, who snapped out of their slump in regular trading hours to skyrocket nearly 60% after-market close. Snap’s stock soared after the company beat earnings estimates and reported its first quarterly net profit. Tech companies Amazon and Pinterest also reported positive earnings reports and saw their stock skyrocket after hours.
Tech stocks have been on a wild ride these past few weeks—will the rollercoaster continue? What do you think?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.