Meta, the Facebook and Instagram parent firm, experienced a massive plunge in its stock price by roughly 20 percent.
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Facebook CEO Mark Zuckerberg speaks about the new Facebook News feature at the Paley Center For Media on October 25, 2019 in New York City. Facebook News, which will appear in a new dedicated section on the Facebook app, will offer stories from a mix of publications, including The New York Times.
It comes after no less than its Chief Executive Officer (CEO), Mark Zuckerberg, responded to the skepticism of its investors regarding its staggering expenses for its metaverse project.
Meta Stock Price Plunges by Around 20 Percent
As per the latest report by the South China Morning Post, the Facebook parent, Meta, sees a decline in its shares, which already hit around 20% of the decrease in stock price.
The Hong Kong-based news outlet notes that the shares of Meta decreased significantly after the tech giant disclosed its bleak forecast for the holiday or the last quarter of the year.
The Facebook parent company also admitted its costs are going to skyrocket by next year or in 2023, the South China Morning Post reports.
The media outlet did the math. And it turns out that the 20% decrease in stock price already slashed a whopping $67 billion from the market value of the tech behemoth.
What's more, the Zuckerberg-led firm lost roughly half a trillion dollars in market value since the start of 2022.
It is worth noting that the bleak forecast that Meta shared comes amid the various difficulties that the tech giant is facing these days.
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This photograph taken on October 28, 2021 shows the META logo on a laptop screen in Moscow as Facebook chief Mark Zuckerberg announced the parent company's name is being changed to "Meta" to represent a future beyond just its troubled social network.
For instance, the Facebook parent is grappling with the heating competition against the Chinese social media, TikTok. Not to mention that the advertising policies of Apple on iPhones are also heavily affecting the sales of Meta. The ongoing global economic slowdown is also hitting the social media giant.
According to a recent news story by the New York Post, the Facebook parent firm experienced a massive decline in its revenue in the past two quarters. However, it should be noted that the Google parent, Alphabet, and Microsoft also reported weak earnings for the last quarter.
Read Also: The Wire Retracts Report Regarding Meta Giving Politician Special Permissions to Remove Posts
Zuckerberg's Metaverse Remarks
Besides these concerns, the tech giant is now facing skepticism from its investors regarding its expensive metaverse project.
The big boss of Meta admits that the investments in the massive metaverse project might take roughly a whole decade before it starts making money.
The South China Morning Post reports that one of the analysts during an investors' call with the tech CEO that investors are actually worried about the "experimental bets" of Meta.
Zuckerberg responds by saying, "I think that those who are patient and invest with us will end up being rewarded."
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Written by Teejay Boris
