Read a Barron’s news item about Meta Platforms - FB’s parent company - taking an astronomical dump today, to relieve its built-up constipation.
Tech Wreck. Meta Platforms' rotten day infected technology shares broadly today, sending the Nasdaq Composite down 3.7%—its worst day since September 2020. The S&P 500 lost 2.4%, and the Dow Jones Industrial Average fell 1.5%. Tech sector stocks in the S&P 500 dropped 2.9% today, while communication services sector shares—which include Meta—tumbled 6.7%. Meta's market value decreased by more than $230 billion today, which ranks as the biggest one-day decline ever for a U.S. company. Shares of the company formerly called Facebook closed down more than 26%. To put that in context, there are only about 30 S&P 500 companies worth more than Meta stock’s loss today. It’s like wiping out the entire market value of Nike, Costco, or Morgan Stanley in one day. In fact, the loss was nearly triple the combined value of Facebook’s social media competitors Snap, Twitter, and Pinterest. Eric Savitz shared his thoughts on Meta's latest report and what it means for the rest of the tech sector. In short, the metaverse can’t arrive soon enough. For Snap and Pinterest, however, things don't appear to be so dire. Roland. Toronto.
