Meta Platforms Inc.’s one-day crash now ranks as the worst in stock-market history.
The Facebook parent plunged 26% Thursday on the back of disappointing earnings results, and wiped out $251.3 billion in market value underscoring the biggest wipeout in market value for any U.S. company ever.
Meta’s market cap as of Wednesday’s close stood at roughly $900 billion.
Some market strategists pointed towards strong rivalry in the market and the fact that revenue was below expectation.
The sheer size of Facebook’s collapse illustrates just how tech companies have ballooned in size to become behemoths with unprecedented market power, and the drama that can ensue when they stumble.
“Lots of U.S. megacaps are priced as growth stocks. They may suffer more in a rising yield environment, especially if growth becomes more questionable,” said Frederic Rollin, senior investment advisor at Pictet Asset Management.
Twitter Inc., Snap Inc. and Pinterest Inc. all closed lower Thursday and dragged the Nasdaq Index down 4.2%, its worst selloff since September 2020. Meta shares rose 1.4% after hours.