Facebook’s stock plunge weighed on world markets yesterday, helping to drag down major stock indexes and reversing recent gains.
Shares in Meta, Facebook’s current owner, dropped 24% in Wednesday’s morning trading, as the company reported its largest loss of users in the history of the company.
This major drop caused the company’s overall value to drop 200 billion, which is larger than the entire Greek economy. This in turn caused Mark Zuckerberg to lose $29 billion from his own net worth.
US tech companies have come under mounting pressure in 2022, as investors expect policy tightening at the US federal reserve. This action is to erode the industry’s rich valuations following years of ultra low interest rates.