The share market has been brutal this year for Facebook. Facebook’s parent company-Meta, Meta’s stock plummeted by 26% on Thursday, February 3. It is one of the largest single-day declines in market value. Meta loses $232 billion in market value.
Why has Facebook’s stock dropped by 26%?
Tiktok has been growing rapidly in the past years among young audiences due to which it became one of the reasons for declining of Facebook. Young people have started to shift towards TikTok from Facebook.
Facebook lost 500,000 active users this week. The number of monthly active users has stopped growing at 2.91 billion. This news made headlines all over the world. If Facebook doesn’t do anything active users will keep declining.
EU’s New regulations
Facebook has had wobbles before but it was able to overcome them. But this time it is about 232 billion. It is more than the overall market value of Netflix. Due to its drop in the stock market, Nvidia has surpassed Meta as the 7th largest US company.
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