This giant, overnight evaporation of more than 1.5 trillion yuan

2022-05-13 0 By

The three major U.S. stock indexes failed to extend their four-game winning streak on Thursday.Facebook, the tech giant rebranded as Meta, jumped to a lower open after a 27% intraday drop triggered a sell-off in social media stocks and weighed on the market as fourth-quarter earnings and active users missed expectations across the board and first-quarter guidance was unexpectedly weak.By the close, the Dow was down 1.45% at 35111.16;The S&P 500 fell 2.44% to 4,477.44;The Nasdaq fell 3.74% to 13,878.82, its biggest one-day drop since June 11, 2020.Meta plunged 26.39% on Thursday, wiping $237.6 billion off the company’s market value, after key metrics and guidance for the fourth quarter fell short of expectations across the board.Not only was it the biggest one-day drop since Meta and its predecessor Facebook went public nearly a decade ago, it was also the biggest one-day drop in U.S. stock market history — $237.6 billion, or the equivalent of losing a Disney or two Goldman Sachs in a single trading day.Founder and CEO Mark Zuckerberg’s personal wealth has also plummeted as his company’s share price has plummeted.According to Forbes’ Real-time Billionaires list, Zuckerberg’s wealth has plummeted from a peak of $134.5 billion in October 2021 to $84.8 billion today, a drop of $49.7 billion (316.1 billion yuan).Zuckerberg has dropped out of the top 10 on Forbes’ list of the richest people, following a sharp decline in his stock wealth, and is now 12th.As one of the tech giants, Meta has been one of the cornerstones of confidence in the US stock market, according to the analysis.After this panic selling of Meta, the market needs to clarify whether the problem is with the meta-universe business or the overall problem of the tech giants.Another analysis believes that Meta and Alphabet, the parent company of Google’s stock price divergence, reflects the impact of Apple to upgrade the privacy protection policy of mobile phone users, Meta’s future advertising business growth prospects are unclear.Source: CCTV Finance