Shares of Meta (Facebook) fell 26,4% when Wall Street closed on Thursday, which probably translates into losses of almost $ 200 billion for the company.
The social media giant, which lost users in North America for the first time in its history, announced lower profits on Wednesday, as well as the prospect of slower growth in the first quarter of the year.
The plunge comes as the company tries to turn to virtual reality with the "Metaverse" product, as announced by its founder Mark Zuckerberg.
This is the biggest drop in the company's share in its history. The previous big drop was on July 26, 2018, when the company lost $ 120 billion.
According to experts, TikTok, the pandemic and the cost of mobile data in India have helped to remove users from Facebook. Many even ask the question: when will be the turn of Instagram?
According to data, fewer and fewer people logged in to Facebook daily on a quarterly basis than they did last year. It was one of the many worrying signs, along with the company's profit that was formed below expectations but also the disappointing revenue outlook.
Meta Chief Financial Officer Dave Wehner said the fewest lockdowns for him COVID-19 are responsible for the crash, as internet activity increases during quarantine periods.
He also mentioned the rising cost of internet for consumers in India and the growing interest in TikTok.
Facebook and, to a lesser extent, Instagram have overcome challenges in the past such as the leak of confidential personal data, Snapchat, Twitter and more. Instagram invests billions of dollars in video-related features.
Shares of other social media companies also came under pressure in the stock market. Twitter fell 5,6%, while Pinterest Inc and Snap Inc fell 10,3% and 23,6% respectively.