- Meta, the parent company Facebook's family of apps have about $53 billion wiped off its stocks on Tuesday
- This represents a 10 per cent loss for the social media company as investors dump shares of social media companies
- It follows after Snapchat founder raised an alarm about macro environment where advertising revenue is in sharp decline
Meta, the parent company of Facebook, Instagram, WhatsApp and Messenger lost 10 per cent of its market value on Tuesday, May 24, 2022, wiping off $53 billion after the owners of Snapchat, Snap warned about the macro environment.
Snapchat’s second-quarter profits warning reverberated through many social media and digital advertising shares, as investors dumped their stocks.
Snapchat's warnings ripped through social media
Snap said that the macroeconomic environment has gone bad more and faster than expected in 2022.
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Shares of the photo-sharing app went down more than 40 per cent, according to Business Insider, Pinterest lost 27 per cent, Google’s parent company, Alphabet saw 8 per cent of shares shaved off and Twitter fell by 4 per cent.
The warning by Snapchat owners wiped off almost $200 billion cumulatively from shares of social media firms and digital advertising companies.
Investors dump social media stocks amid advert revenue decline
The warning by Snap eventually could be true for its counterparts and the types of goods that are commonly advertised on its platform.
Experts believe that consumer preferences are changing as they stop buying tangible goods and start spending on services, travel and hospitality as they prepare for their first summer as COVID-19 spread decreases.
Mark Zuckerberg makes $11 billion in one day, moves from 18th richest person to 10th
Meanwhile, Legit.ng has reported that after almost two months of losing his position among the world’s wealthiest people, Meta CEO and Facebook owner, Mark Zuckerberg is making his way back to the top.
The shares of Meta, the parent company of Facebook, Instagram, WhatsApp and Messenger went up more than 17 per cent on Thursday, April 28, 2022, earning Zuckerberg $11 billion in one day and boosting his fortune by $11.5 billion, according to CNN.
Even though Meta could not meet Wall Street predictions for the first quarter, posting its slowest revenue growth in years, investors were happy about the company’s turnaround.