Meta shares crash 26% considered as the biggest Wipeout in History

            On February 3, shares of the business previously known as Facebook fell to an all-time low after it disclosed rare earnings decrease due to a significant increase in spending, unstable ad revenue growth, and fewer daily US users on its flagship platform.

Shares dropped more than 26%, wiping out more than $230 billion from the company’s market value.

The massive collapse, which erased more than $200 billion off Meta’s market value and almost $29 billion from Chief Executive Officer Mark Zuckerberg’s personal worth, impacted the entire technology industry and brought the Nasdaq Composite Index down. According to a Reuters study of Refinitiv data, it was the largest drop in market value for a publicly traded firm in the United States.

It was the company’s largest one-day loss since its initial public offering on Wall Street in 2012.

According to current statistics, Meta was a widely owned stock by many investor groups, including hedge funds, leaving a lot of funds potentially vulnerable by the wipe-out in its shares. Other institutional investors were also major shareholders.

It was also a popular stock among ordinary investors, who looked to be buying the decline with zeal.

Meanwhile, on February 3, an unprecedented drop in the stock price of Facebook’s parent company, Meta Platforms Inc., helped tug other tech stocks down on Wall Street, abruptly breaking the market’s four-day winning run. The NASDAQ, which is centred on technology, fell 3.7 percent, its worst drop since September 2020. The S&P 500 dropped 2.4 percent.