Global Market Bulletin
  • Home
  • Stock Market News
  • Investing
  • Economy
  • CEO Interviews
  • Contact Us
No Result
View All Result
SUBSCRIBE
Global Market Bulletin
  • Home
  • Stock Market News
  • Investing
  • Economy
  • CEO Interviews
  • Contact Us
No Result
View All Result
Global Market Bulletin
No Result
View All Result
Home Stock Market News

Stocks of Meta Spiral Down by 25%, Other Wall Street Stocks Open High

by Global Market Bulletin
November 1, 2022
in Stock Market News
0
Facebook Meta
26
SHARES
56
VIEWS
Share on FacebookShare on Twitter

The tidings from Wall Street are by and large good, as the opening price of stocks is high, except for the fact that Meta Platforms Inc. (NASDAQ: META), the company which owns Facebook, the giant social networking site, is not faring well. 

You might also like

CleanSpark (CLSK) is Quietly Outgrowing the Competition

Pagaya Technologies (PGY) is a Fintech Stock You Can’t Afford to Ignore

Smart Money is Flooding Into DoorDash (DASH) Stock in 2025

The shares of Meta nosedived 25% on Thursday. Its CEO, Mark Zuckerberg, has requested investors to be patient, because of its problems related to unproven Metaverse bets, and also because it is a testing time for companies that do digital advertising. 

However, shareholders are panicky, since the current drop is the biggest in a single day since February. Meta’s problem has resulted in Nasdaq being down by 0.2%.

The larger companies, though they had started well, also fell, as shown by the index S&P 500. Nevertheless, the stock market did have some good news on the economic front since the economy has shown a 2.6% growth in the last quarter.

The US dollar trimmed its gains slightly as data revealed that the country’s GDP has shown some growth, so far unprecedented in the current year. Treasury yields of ten years were not steady. It went below 4% once. 

McDonald’s performance was promising as it had a rise of 3% in premarket trading. The company reported good progress in its third-quarter sales, as a result of more customers using its app. Similarly, an increase in travel demand in the summer months has led to Southwest Airlines recording a rise of over 4%, because of its third-quarter increase in revenue. 

Shareholders of Meta Platforms take a huge hit

Shareholders of Meta Platforms had taken a huge risk by investing in Metaverse real estate plots. The digital world of Metaverse that is being created by the company has led to the crash of its stock, with the market value decreasing by $677 billion in the present year. Meta is no longer one of the world’s top 20 companies.

Available statistics do not point to any possibility of the company escaping its tightening noose in the near future. As investors put money in the company’s virtual reality plots, the stock plummeted by 25%, while the expenses for building Metaverse are only swelling.

In the beginning of the current year, Meta Platforms was the sixth largest company in the US by way of market capitalization, having a market value of about $1 trillion. Within a period of just ten months, the value has slid down to $258 billion, and the company is now 26th in position. Companies like Procter & Gamble, Chevron Corp., and Eli Lilly & Co. are ahead of Meta now.

Though once a company among those most cherished by investors, Meta can no longer hold on to that position. Investment brokers are reluctant to go anywhere near it. After considering the company’s low quarterly revenue, investment banks like Cowen, KeyBanc Capital Markets, and Morgan Stanley have downgraded their stock.

According to Mandeep Singh, senior equity research analyst at Bloomberg Intelligence, Meta continues to be too aggressive about investing in long-term initiatives, despite the significant slowing down of its revenue growth. 

He pointed out that the company’s operating expenses (Opex) and capital expenditures (Capex) picture for 2023 was surprising, in view of the lack of traction seen in its Metaverse efforts.

Meta’s premarket slump on Thursday was bad enough, though not as bad as its February slump when the shares came down 26% as a result of bad revenue, and its market value decreased by $251 million. It was the first time that a US company was undergoing such a total rout.

However, such a low value of the company’s stock is attracting a certain class of investors who are ready to buy now and wait for its value to rise. Whatever the eventual result be, so far signs of progress are woefully lacking.

The idea of investing in the virtual reality called Metaverse originated a year ago. This happened together with the company’s change of name to Meta Platforms, from its earlier name Facebook Inc. 

According to the company’s announcement on Wednesday, its expenses for the current year are likely to be between $85 billion and $87 billion. This estimate is expected to increase to something between $96 billion to $101 billion in 2023. As Neil Campling of Mirabaud Securities pointed out, this was totally against investors’ expectations of the company cutting costs.

According to Bloomberg data, Meta’s quarterly expenses amount to the total expenses of all S&P 500 companies, barring just 16 of them.

Tags: META Stock
Share10Tweet7
Global Market Bulletin

Global Market Bulletin

Global Market Bulletin is a leading provider of stock market updates, economic news, and personalized investing guides. Our team brings you the latest global financial information to help you make smart investment decisions. About the Editorial Team Our editorial team consists of financial experts and seasoned market analysts who bring decades of experience to our coverage. With a commitment to unbiased reporting, our team ensures that every article is backed by thorough research and delivers accurate financial insights.

Recommended For You

CleanSpark (CLSK) is Quietly Outgrowing the Competition

by Global Market Bulletin
June 22, 2025
0
CleanSpark (CLSK) is Quietly Outgrowing the Competition

CleanSpark Inc. (NASDAQ:CLSK) is a publicly traded, U.S.-based Bitcoin mining company that has rapidly emerged as one of the most dominant and innovative players in the global digital...

Read moreDetails

Pagaya Technologies (PGY) is a Fintech Stock You Can’t Afford to Ignore

by Global Market Bulletin
June 22, 2025
0
Pagaya Technologies (PGY) is a Fintech Stock You Can’t Afford to Ignore

Pagaya Technologies Ltd. (NASDAQ:PGY) is a next-generation financial technology company that is redefining how credit and capital flow across the global economy. Founded in 2016 by Gal Krubiner,...

Read moreDetails

Smart Money is Flooding Into DoorDash (DASH) Stock in 2025

by Global Market Bulletin
June 22, 2025
0
Smart Money is Flooding Into DoorDash (DASH) Stock in 2025

DoorDash Inc. (NASDAQ:DASH) is one of the most transformative and innovative companies in the modern logistics and on-demand delivery sector. Founded in 2013 by Stanford students Tony Xu,...

Read moreDetails

Analysts Say CEL-SCI (CVM) Could Explode Up to 7,000%!

by Global Market Bulletin
June 19, 2025
0
This $500+ Stock Is Quietly Dominating Surgery — Intuitive Surgical (ISRG) Could Go Even Higher

CEL-SCI Corporation (NYSE:CVM) is a trailblazing clinical-stage biotechnology company that has spent decades at the forefront of immunotherapy innovation, developing a groundbreaking approach to treating cancer and infectious...

Read moreDetails

Is DHI Group (DHX) the Next Monster.com for the AI Age?

by Global Market Bulletin
June 19, 2025
0
Is DHI Group (DHX) the Next Monster.com for the AI Age?

DHI Group Inc. (NYSE:DHX) is a leading provider of AI-driven career marketplaces that connect highly skilled professionals with specialized employers in technology, defense, and security industries. With a...

Read moreDetails

Browse by Category

  • CEO Interviews
  • Economy
  • Investing
  • Stock Market News
  • Uncategorized

QUICK LINKS

  • Stock Market News
  • Investing
  • Economy
  • Contact Us
  • About Global Market Bulletin
  • Editorial Policy – Global Market Bulletin
  • Our Editorial Team

RECENT POSTS

  • CleanSpark (CLSK) is Quietly Outgrowing the Competition
  • Pagaya Technologies (PGY) is a Fintech Stock You Can’t Afford to Ignore
  • Smart Money is Flooding Into DoorDash (DASH) Stock in 2025

GET EMAIL MARKET UPDATES

Subscribe to our mailing list to receives daily updates direct to your inbox!
  • Privacy Policy
  • Terms and Conditions

© 2022 Global Market Bulletin. All Rights Reserved.

No Result
View All Result
  • Home
  • Stock Market News
  • Investing
  • Economy

© 2022 Global Market Bulletin. All Rights Reserved.

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?