Meta Shares Plunge 24% as the company reported its second straight quarterly decline.
What Happened?
Meta shares closed at $97.94, the lowest price since 2016.
Since the start of the year, Meta has lost more than half a trillion dollars in market value and shares are down by more than 61%.
Meta’s Metaverse project has lost over $9 billion in the first three quarters.
Meta has predicted that the Metaverse project will incur more losses in 2023.
Mark Zuckerberg says that he expects his Metaverse investments to take about a decade to bear fruit.
A major cause of concern is that Meta is spending on Capital Intensive projects when the ad market, a major source of revenue for the company is drying up.
It’s been hurt by competition from TikTok, a broad slowdown in online ad spending, and challenges from Apple’s iOS privacy update.