Online advertising sluggishness, competition from TikTok, and increasing skepticism about the Metaverse led to a disappointing third-quarter earnings report Oct. 26 for Meta (META) .
Shares closed Oct. 27 at $97.94, the lowest closing price for the stock since 2016. It was down 24.6% for the day. For the year, Meta shares are down an astonishing 61%.
This is on the heels of a constant stream of losses in net worth for Meta CEO Mark Zuckerberg since a high of $142 billion in September 2021. That value shrunk to $37.7 billion according to new Oct. 27 data from Bloomberg Billionaires Index. That’s a loss in net worth for Meta CEO Mark Zuckerberg of more than $100 billion in 13 months.
Twitter Users Have Opinions
Twitter user @unusual_whales posted the news and the comments came roaring in.
“$100 billion here, $100 billion there, pretty soon you’re talking about real money,” chirped @Smartnership.
“He had a worse week than Kanye,” noted @barryho55648905.
“If you bought $META last year on 10/27/2021 and you held till today you would’ve lost 67%. Now tell me why should I trust buy and hold. Also cash yield is 2.52%,” calculated @FibRetracer.
“Hey, at least I can say I never lost that much money,” boasted @TimTimTim737.
In the earnings call, Meta had reported third-quarter revenue of $27.7 billion for its second quarterly drop in a row.
Worse, Meta signaled a gloomy outlook for the fourth quarter, projecting $30 billion to $32.5 billion in revenue. Wall Street was anticipating Q4 revenue in the high end of that range so the projected floor scared investors off.
