The financial results presented by Meta (Facebook) a few days ago have caused the company’s stock to sink. So much so, that it has even ceased to be one of the ten companies with the highest market capitalization in the world -one of the indicators to measure the weight or value of a company-.
The company’s shares have plummeted around 40% since the beginning of the year. The bulk of it came on the day Meta released its financial results for the last fiscal quarter of 2021, which revealed for the first time in the company’s history a drop in the number of active Facebook users.
That, however, is not the only reason. Zuckerberg himself acknowledged that competition is increasing and that platforms such as TikTok are growing rapidly. The company, moreover, indicated that Apple’s new policies in iOS – which prevent apps from tracking users if they do not approve – has affected the advertising business, its main revenue driver.
Q1 2022 revenue guidance, likewise, came in below what analysts expected. Meta forecast revenue between $27 billion and $29 billion. Investors, on the other hand, were expecting an average of $30.15 billion.
All this, moreover, is linked to the strong commitment that Mark Zuckerberg is making to the metaverse, the virtual universe with which he intends to take social connections on the Internet even further. This is an idea that other companies have also promoted but which still has a long way to go, raising some skepticism among investors.
The market capitalization of companies varies constantly, as it is derived from the value of their shares. The ranking of the most valuable companies according to this parameter, therefore, changes often and it would not be a surprise if Meta (Facebook) soon returns to the top 10. At the moment, however, this is the list:
- Apple, with a market capitalization of $2.8 trillion.
- Microsoft, with a market capitalization of $2.2 trillion.
- Aramco, with a market capitalization of $2 trillion.
- Alphabet, with a market capitalization of $1.8 trillion.
- Amazon, with a market capitalization of $1.6 trillion.
- Tesla, with a market capitalization of $905.7 billion.
- Berkshire Hathaway, with a market capitalization of $700.6 billion.
- Nvidia, with a market capitalization of $613 billion.
- TSMC, with a market capitalization of $600.3 billion.
- Tencent, with a market capitalization of 589.8 billion dollars.