Meta Platforms became the first company to lose more than $200 billion in market value in one day in February 2022.
On February 3, 2022, Meta Platforms’ shares fell about 26% after the company reported disappointing user figures and warned about competition and advertising pressure. The decline erased more than $200 billion in market capitalization, one of the largest single-day losses ever recorded for a public company.
Meta was then known to investors through its Facebook social network, but the corporate name had changed from Facebook, Inc. to Meta Platforms, Inc. in October 2021. The rebranding emphasized the company’s long-term interest in the metaverse, while Facebook, Instagram, and WhatsApp remained major products.
A market-capitalization loss is not the same as $200 billion leaving the company’s bank account. It represents the change in the market value of all outstanding shares caused by the lower trading price.