Meta Set to Enter Bear Market After $230 Billion Value Wipeout
Added 12-03-21 01:04:02pm EST - “(Bloomberg) -- Facebook parent Meta Platforms Inc. dropped on Friday, with shares set to enter a bear market after months of volatility triggered by a whistle-blower's revelations and disappointing quarterly results.Most Read from…” - News.yahoo.com
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(Bloomberg) -- Facebook parent Meta Platforms Inc. dropped on Friday, with shares set to enter a bear market after months of volatility triggered by a whistle-blower’s revelations and disappointing quarterly results.
The selloff is more than 20% since its closing record on Sept. 7, erasing about $230 billion in market value. Meta’s stock has been pressured this week as investors grappled with uncertainty surrounding the omicron variant and the possibility that the Federal Reserve will end its pandemic support program sooner than expected. It fell as much as 3.5% to $299.50 on Friday.
Meta shares have been hurt in recent months by negative comments about Facebook’s business model from whistle-blower Frances Haugen, according to David Trainer, who covers Meta for investment research firm New Constructs. Haugen appeared before the House subcommittee on technology earlier this week, after accusing the social media giant of putting “profit over safety” of its users in October.
Mounting concerns about the impact of Apple Inc.’s data collection rules and supply-chain challenges have also contributed to the decline and spurred Meta’s biggest drop in nearly a year in October.
Meta shares are down over 8% for the week ending Friday, with the stock on track to suffer its worst weekly decline since June 2020.
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