Facebook scrambles to escape stock’s death spiral as users flee, sales drop
(Source: CNBC)
KEY POINTS
- Meta is trading at its lowest since early 2019, and the stock is one of the worst performers this year in the S&P 500.
- The company’s problems are mounting, whether it’s the ad hit from Apple’s iOS changes or the growing threat posed by TikTok.
- “I’m not sure there’s a core business that works anymore at Facebook,” said Laura Martin, an analyst at Needham.
A year ago, before Facebook had turned Meta, the social media company was sporting a market cap of $1 trillion, putting it in rarefied territory with a handful of U.S. technology giants.
Today the view looks much different. Meta has lost about two-thirds of its value since peaking in September 2021. The stock is trading at its lowest since January 2019 and is about to close out its third straight quarter of double-digit percentage losses. Only four stocks in the S&P 500 are having a worse year.
