Meta shares sink more than 20% as Facebook loses daily users

Synopsis

Meta shares in Facebook plunge by around 20 percent in after-hour trading on Wednesday, resulting in a loss of $200 billion in the company's value. Chief Executive Mark Zuckerberg warns investors that Meta expects first quarter revenues to decline due to competition from rivals like TikTok. This marks a significant turning point for Facebook, as it experiences a drop in daily users for the first time in its 18-year history, with around one million fewer people using the platform in the last three months of the previous year. Zuckerberg attributes this decline to changing user preferences, particularly among younger audiences who are gravitating towards platforms like TikTok and YouTube. Additionally, Meta faces challenges in advertising revenue, which has been a major source of income, as companies reduce their advertising spending amid ongoing supply chain issues. If the stock does not rebound before trading resumes on Thursday, it will be recorded as the worst day in the company's decade-long stock market history.