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Global Economy

Facebook in descent: Meta loses almost a quarter of its market value

Facebook loses more and more users and the parent company Meta on Thursday almost a quarter of its market value. Is it because of competitor Tiktok or because of Zuckerberg's spending on his mega-project Metaverse?

The Facebook group Meta lost almost a quarter of its value in one fell swoop in early US trading on Thursday. The company's value shrank by $220 billion at the start of trading. According to the financial service Bloomberg: a record loss on the New York Stock Exchange.

After falling 24.8 percent to just under $243, Facebook was still worth around $676 billion in early US trading.

The trigger for the extraordinary decline was that the world's largest online network was hardly able to gain any new users in the past quarter. The sales forecast for the current quarter also disappointed investors.

Meta referred to the competition from the video app Tiktok. Founder and boss Mark Zuckerberg referred to competition from the video app Tiktok. "People have a lot of choices about how they want to spend their time – and apps like Tiktok are growing very quickly," Zuckerberg told media on Thursday.

Facebook also wants to focus even more on short videos in the future. The group developed its own Tiktok counter Reels for this purpose.

Another reason for the loss is Facebook founder and Meta CEO Mark Zuckerberg's heavy spending on his ambitious Metaverse project. At the moment, the parallel universe only exists on the Internet as an idea.

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