Meta Stock: Facebook Parent company Sees 4 Percent Sales Dip

Created By: StateWeb

Oct. 27, 2022

Facebook's parent company Meta Stock value has collapsed to $520 billion over the past year.

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Meta is now on the verge of being booted from the ranks of the 20 largest US companies.

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On Wednesday, investors wiped more than $67 billion off the market value of Facebook's parent company Meta.

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Meta faces many challenges, including slowing global economic growth, competition from TikTok, and privacy changes from Apple that make ads harder to target.

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Much of the company's increased spending is being driven by operating costs at Reality Labs — the unit responsible for bringing the Metaverse to life.

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Zuckerberg tried to calm shareholders in a post-earnings conference call, telling them he expected the investments to take about a decade to pay off.

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Meanwhile, it has frozen hiring, shuttered projects, and restructured teams to cut costs Meta's disappointing earnings came amid a broad sell-off in big tech stocks.

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According to Bloomberg data, The company's quarterly capital spending was higher than all but 16 of the S&P 500 companies spent all of last year.

Credit: Social Media

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