Saturday, April 1

Facebook shares sank 26.4% and in one day lost more than $ 230,000 million of market capitalization

“230,000 million (of dollars) is more than the combined capitalization of 452 companies of the S&P 500”, said Gregori Volokhine, president of Meeschaert Financial Services.

The social media giant lost users in North America for the first time in its history, announced on Wednesday lower profits in the fourth quarter and a slower growth perspective in the current one.

The market seemed particularly concerned about “headwinds” that the social network reported for 2022.

The founder and president of Facebook, now Meta, spoke about the competition from other platforms, even mentioning TikTok.

The collapse of Meta dragged down other listed social networks, such as Snap (-23.6%) or Twitter (-5.6%), but also, more generally, the photo-sharing site Pinterest (-10.3%) and other stars of the new digital economy such as Spotify ( -16.8%).

Meta’s revenue forecast for the first quarter is between $27 billion and $29 billion, lower than the $30.15 billion expected by analysts, According to IBES data from Refinitiv.

The Apple changes to its operating software they give their users the preference to allow their online activity to be tracked, making it difficult for data-driven advertisers to develop new products and understand their market.

US tech majors have come under increasing pressure in 2022 as investors expect the Federal Reserve’s policy tightening to erode the sector’s rich valuations after years of ultra-low interest rates. The Nasdaq lost more than 8% in January, its worst monthly drop since the end of 2019.

“The lowering of earnings prospects by Meta and other companies caught the markets by surprise,” dijo Kenneth Broux, estratega of Societe Generale in London. “Tech sell-off spread to broader equity markets this morning and with the Fed preparing to raise interest rates, we could see more volatility going forward.”

The disappointment around Meta recalled the bursting of the technology bubble in 2000 and showed that, after the sector’s record run, investors have become very selective.

The so-called FAANG group – Alphabet’s Facebook, Amazon, Apple, Netflix and Google – has seen some $400bn of market capitalization evaporate in the first weeks of 2022, as the cheapest segments of the markets have become more attractive as central banks reduce stimulus.