[Asia Economy Reporter Jeong Hyunjin] The stock price decline of Meta Platforms, the parent company of Facebook, continued on the 8th (local time), causing its market capitalization to fall below the $600 billion (approximately 719.1 trillion KRW) mark.
According to CNBC, Meta closed the day at $220.18, down 2.10% from the previous day. As a result, its market capitalization dropped to $59.92 billion, falling below the $600 billion threshold for the first time since May 2020.
Meta's stock price had been around $330 earlier this year, but after the earnings announcement on the 3rd, it plummeted by 31.8%, falling more than $100. On that same day, when the stock price dropped 26%, Meta lost $250 billion in market capitalization, setting a record for the largest single-day market cap loss in U.S. stock market history.
CNBC reported that the market capitalization falling below $600 billion could mean that Meta might be excluded from the competition-related legislative package targeting big tech companies proposed by the U.S. House of Representatives, allowing it to avoid legal obstacles that would apply to its business and transactions. However, the criteria have not been finalized yet, and the Senate is reportedly considering setting the threshold at $550 billion.
Meta is already under investigation and litigation by the U.S. Federal Trade Commission (FTC) over whether it abused its monopoly power in acquiring Instagram and WhatsApp. CNBC pointed out that if Meta becomes subject to the proposed legislation, such transactions could become difficult in the future.
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