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, mostly from the ad hit from Apple’s iOS changes and especially from the growing threat posed by TikTok.
Tweet on Facebook down spiral shares
Facebook stock on ‘death spiral’ as sales plummets!
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@Meta 's problems are mounting, mostly analyst argue from the growing threat posed by @tiktok_us
via @CNBC pic.twitter.com/qMSR2ljMeJ
— The_Journalbiz (@the_journalbiz) September 30, 2022
*STATISA chart on facebook’s stock volatility
A year ago, before Facebook had turned Meta, the social media company was a giant of social media with market cap of $1 trillion
“I’m not sure there’s a core business that works anymore at Facebook,” said Laura Martin, an analyst at Needham.
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.
Zuckerberg said he hopes that within the next decade, the metaverse “will reach a billion people” and “host hundreds of billions of dollars of digital commerce.” He told CNBC’s Jim Cramer in June that the “North Star” is to reach those sorts of figures by the end of the decade and create a “massive economy” around digital goods.
Investors aren’t enthusiastic about it, and the way they’re dumping the stock has some observers questioning if the downward pressure is actually a death spiral from which Meta can’t recover.
“I’m not sure there’s a core business that works anymore at Facebook,” said Laura Martin of Needham, the only analyst among the 45 tracked by FactSet with a sell rating on the stock.