Finance

Facebook Loses $232 Billion In The Share Market

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%?

Facebook has been getting in trouble due to its user privacy policy in the past years. But due to the increase in the number of users they were able to ride out all those criticisms and scandals. But they can no longer deny them. To get rid of bad vibes from public memory, it renamed its maiden name, Meta. But it has been of no use just like when google tried with the alphabet. They were able to keep all those scandals at the edge but this time it is different. Here is one of three factors that may have hit the Meta stock market so badly.

One of the first reasons is apple’s new update about its privacy policy. Apple’s requirement for its users to consent to be tracked by the advertisers made Meta lose $10 billion in the share market which is 8.5% of the company’s revenue. Since Meta gets a lot of its earnings from its advertising, it was a huge loss for the company.

EU’s New regulations

With the EU’s new regulations about the privacy policy of users, Meta is not allowed to transfer data of the users from the EU to the US. Meta and many other businesses rely on those data to operate. Meta has suggested that if it fails to comply with the EU new regulations then it will simply stop providing its Instagram and Facebook services to the union.

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.