![]() ![]() The world's richest person lost $35 billion in a day in November as Tesla Inc. A one-day wealth loss of $31 billion would rank as the second-biggest ever caused by a share-price decline, only rivaled by the volatile swings in Elon Musk's fortune. The 37-year-old has now been pushed outside the list of the Top 10 wealthiest people in the world for the first time since July 2015. ![]() What does the Meta crash mean for Zuckerberg's wealth? Meta's steep decline leaves Zuckerberg, the company's chief executive officer, with a net worth of about $92 billion, down from $120.6 billion, according to the Bloomberg Billionaires Index. The lawsuit, which could take years to go through the courts without a settlement, called for the "divestiture of assets," including WhatsApp and Instagram, to restore competition. A federal judge in January ruled that US regulators' re-worked anti-trust case against Facebook can go ahead, saying the complaint was more robust and detailed than the version denied in 2021.The US Federal Trade Commission has alleged Meta holds an illegal monopoly by acquiring potential competitors that it now owns like Instagram and WhatsApp. ![]() Regulators in the United States and elsewhere have vowed to curb its power. As iPhone users opt out of sharing data for targeting ads in Facebook apps, marketing messages become less precisely targeted and thus less profitable. In the update of iOS, Apple requires application publishers to seek permission before collecting data, much to the regret of companies like Meta that rely on it for ad targeting. It said Facebook's ad-targeting efficiency is being undermined by a change Apple implemented to the software running iPhones. CEO Mark Zuckerberg blamed Apple's Apple’s new rigorous privacy policy for its poor show. The firm is making a priority of investing in its Reels short-form video feature as well as apps such as WhatsApp and Instagram to stay in tune with users, which means spending big on services that are harder to make money from than the Facebook social network with its digital ad machine. Meta faces increased competition, particularly from video star TikTok as well as messaging services such as Telegram and Slack.ĥ. ![]() But major investors in the stock market are averse to waiting a long time for big returns, tending to trade shares based on potential for quick gains. Zuckerberg had, however, previously warned that the company's investment in this area would reduce 2021 operating profit by $10 billion and would not be profitable "any time in the near future. 3.Meta also reported $10 billion in operating losses from its nascent metaverse business in the AR and VR unit. Meta has forecast first-quarter revenue in the range of $27 billion to $29 billion while analysts were expecting $30.15 billion. The company also posted net income of nearly $10.3 billion in the final three months of last year, a decline of 8% from the same period a year ago. “Increase in data pricing would have made some consumers more cautious about how they use data,” said Neil Shah, vice president, research at Counterpoint Research. Prices of data plans rose up to 25% in the last quarter across the three telecom service providers - Bharti Airtel, Reliance Jio and Vodafone Idea. Meta said user growth in India was limited by an increase in data package pricing. He also blamed rising internet costs for consumers in India and increasing interest in ByteDance Inc's video-sharing app TikTok. India angle: Meta Chief Financial Officer Dave Wehner on Wednesday told financial analysts part of the usage decrease for the main Facebook app and website came from fewer COVID-19 lockdowns, which have tended to generate a boom in online activity. In July 2018, the company lost $119 billion in market cap in a single day after reporting slowing growth in its second-quarter earnings. It was the biggest one-day decline for a stock in US history and its single-day decline would be more than the market value of about 470 of the S&P 500's members. The 26% crash wiped out $232 billion from its market value. It is hence not surprising that Meta is in the midst of a historic stock collapse after its earnings showed no growth in monthly Facebook users last quarter relative to the prior period, raising concerns about the company's future. Add to that slow growth numbers, a lower revenue forecast for the next few months, failure to generate advertising revenue from Reels and added costs due to changes in Apple’s operating system that prevent ad-tracking. The biggest troubling sign for the company is that fewer people logged on to Facebook every day per quarter than they did the year before for the first time during the last three months of 2021. NEW DELHI: Facebook parent Meta crashed 26 percent in US trading on Thursday on the back of poor earnings results with founder Mark Zuckerberg's wealth plunging by as much as $31 billion in one of the biggest one-day wealth drops ever. ![]()
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