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- Top 5 Losers of 2022: Meta
Top 5 Losers of 2022: Meta
Throughout the entire year of 2022, the IT sector was under pressure after tech giants enjoyed rapid growth during the pandemic in 2020-2021. Large companies had better opportunities than their smaller peers, but there were some exclusions. Stocks of Meta Platforms, owner of Facebook and Instagram, lost 65%, which is an absolute record for the FAAMG group of companies (Facebook, Apple, Amazon, Microsoft, and Google).
Facebook has slowed down its expansion as the number of active users on the platform are now close to three billion. Management therefore shifted gears and bet on new Metaverse development as a new growth engine. These bets failed as Q3 2022 revenues performed a decline for the second time in the company’s history. As a result, management was forced to fire 11,000 employees or 13% of the overall staff. Nevertheless, the valuation of the Metaverse could be overestimated. The resistance from Facebook founder Mark Zuckerberg to recognise these facts may prove to be a dirty to keep further company information from surfacing. Thus, investments in Facebook are still considered to be very risky.
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