Facebook's parent company, Meta, suffered a historic and brutal correction on the New York Stock Exchange on Thursday (February 3rd), losing more than a quarter of its value and wiping out more than $200 billion in valuation, unprecedented for Mark Zuckerberg's company but also for Wall Street.
The social media giant, which lost users in North America for the first time in its history, announced post-closing Wednesday a lower profit in the fourth quarter and an outlook for slower growth in the first, which greatly disappointed investors.
Thursday, the title of Meta Platforms was sanctioned from the opening to end down 26.39% to 237.76 dollars.
That's a plunge of more than 37% since its last high in September at $382.18.
This spectacular fall of one of the largest capitalizations on Wall Street led to a plunge in the Nasdaq index, which is dominated by technology (-3.74%).
New Zealand's GDP
As the stock price plummeted like a rock, Facebook's capitalization - valued at $879 billion at the close the previous day - suffered a phenomenal loss, the largest in Wall Street history, founding d at least $200 billion in one session.
"200 billion dollars is more than the combined capitalization of 452 companies in the S&P 500", which has only 500, as its name suggests, noted Gregori Volokhine, president of Meeschaert Financial Services.
It is also almost the equivalent of the Gross Domestic Product (GDP) of an entire country like New Zealand.
The fortune of Facebook boss Mark Zuckerberg, estimated at $113 billion at the close of trading on Wednesday, according to SEC documents, has also suffered a severe amputation.
The co-founder of the social network was virtually relieved of almost 28 billion dollars.
With AFP
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