Facebook parent company Meta has lost over $237 billion worth of value on Thursday. It was the largest single-day decline on record for the U.S. stock market.
The plunge of Meta is due to a less-than-expected revenue forecast that exceeded the previous record of Apple, in which Meta lost $182 billion value in September of 2020.
The seven biggest declines in the history of the stock market have all occurred within the past two years, due to the fact that Apple, Microsoft, Tesla and Amazon have all risen in terms of valuation. Before 2020, the biggest decline was attributed to Facebook -which saw the company saw a 119 billion decrease in the year 2018. That also occurred in the wake of Facebook projected revenue that was lower than analyst expectations.
Meta’s decline in value occurs as Meta is looking beyond its current business including Facebook, Instagram and WhatsApp in the direction of the metaverse, which is a virtual reality built on cutting-edge technology. Chief Executive Chief Executive Officer Mark Zuckerberg announced Wednesday Meta suffered lost $10 billion by 2021 due to its investments into the world of meta.
The following chart of the most significant one-day valuation declines within U.S. stock market history since July of 2018:
Largest one-day drops in market cap
Since July 2018, among the 20 largest S&P 500 companies
Source: FactSet. As of Feb. 3, 2022.