Meta Platforms became the first company to lose more than $200 billion in market value in a single day.
On February 3, 2022, Meta Platforms’ share price plunged after the company reported disappointing user figures and warned about competition and pressure on its advertising business. The fall erased roughly $232 billion in market capitalization in one trading session, one of the largest one-day losses ever recorded.
Meta Platforms was then known globally through Facebook, Instagram, and WhatsApp. The company had changed its corporate name from Facebook, Inc. to Meta Platforms, Inc. in October 2021 to emphasize its ambitions in virtual and augmented reality.
A market-capitalization loss is not the same as cash leaving the company’s bank account. It represents the change in the market value of all outstanding shares. The figure can therefore be enormous even though only a fraction of shares may trade on that particular day.