[Asia Economy New York=Special Correspondent Joselgina] The stock price of Meta Platforms, the parent company of Facebook, is plummeting more than 26% intraday on the 3rd (local time). If this continues, it is expected to break the record for the largest single-day drop ever.
The Wall Street Journal (WSJ) reported that as the New York stock market approached closing, Meta's stock price appeared set to record its worst performance since its 2012 listing. As of 3:12 PM, Meta's stock was trading at 236.96, down 26.69% from the previous close. The previous largest single-day drop was 19% in July 2018.
This is the aftermath of Meta's earnings announcement the previous day, which fell short of market expectations. Meta's net profit for the fourth quarter of last year was $10.29 billion (12.44 trillion KRW), down 8% from a year earlier. The growth of video-centric platforms like YouTube and TikTok is interpreted as having impacted the position of Facebook, the world's largest social media platform.
In particular, Meta also stated that its revenue growth rate is expected to slow down going forward. Additionally, it estimated that Apple's newly introduced privacy features would cause a revenue loss of about $10 billion (approximately 12 trillion KRW) this year. Following this, Meta, which closed the regular trading session up 1.25% the previous day, recorded a double-digit plunge in after-hours trading immediately after the earnings announcement.
Not only Meta, but Spotify, which also disclosed disappointing earnings the previous day, is trading down more than 15% from the previous close at around 161.73 in the New York stock market this afternoon.
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