S&P 500: Mark Zuckerberg’s pipeline dream turned into a $618 billion nightmare

Mark Zuckerberg’s plan to dominate the metaverse is turning into a nightmare for everyone. And it’s costing serious real-world cash: $618 billion to be exact.


Stocks of S&P members 500 Meta . Platform (Facebook), the company formerly known as Facebook, fell nearly 25% on Thursday to 97.94 following a dismal earnings report. The company, which is shifting towards cash-strapped virtual reality products and away from the social gold mine, reported a quarterly profit that was 11% higher than expectations.

After this latest halving, more than $600 billion in market value has disappeared since company announced its new name almost a year ago on October 28, 2021. And the stock is down 69% since then – more than double the drop of other big tech stocks.

Meta Pain Begins

Meta’s massive write-off is spreading pain across the entire S&P 500. Remember the company was worth nearly $900 billion a year ago. It consistently ranks in the top 10, if not the top 5, of the most important stocks in the S&P 500.

It’s now valued at just $263 billion – marking one of the biggest drops in S&P 500 history. Even Enron’s catastrophic crash cost investors less (75 percent) billion USD). And Meta is currently only the fifteenth largest holding in the S&P 500, behind Chevron (CVX) and Johnson & Johnson (JNJ).

And Meta’s loss of market value is on par with Microsoft (MSFT) and Alphabet (GOOGLE) is low, even though those firms are much larger.

Meta Pain hurts everyone

There’s no question who is the biggest loser from the Meta move: Zuckerberg himself.

Zuckerberg has seen his $76 billion Meta holdings go up in smoke since October 28, 2021. He remains the largest stock holder. Zuckerberg owns nearly 13% of the company with 348 million shares.

But the losses are growing. Meta’s largest owner is Large mutual funds and ETF companies. That’s a position close to 1% in the S&P 500, but much larger in other widely held ETFs.

Meta is an important part of 17% of SPDR Select the Industry of Communication Services (XLC) ETFs. And it is still the seventh largest position, accounting for 2.5%, in the Invesco QQQ Trust (QQQ).

The question is when will investors step in and rein in the madness? Activist investors own only a small portion of the company, said S&P Global Market Intelligence. Each owns less than 0.2% of the shares of the company, which includes the New York State General Retirement Fund, DE Shaw and Davis Selected Advisors.

When will the Meta nightmare end?

The biggest drop in market value since the new name of Meta

Company Ticker Shares % ch. Loss of market value since Meta renaming ($ billion)
Microsoft (MSFT) -30.1% – $744.2
Alphabet (GOOGLE) -36.8 – $744.2
Meta . Platform (META) -69.1 – $618.1 (AMZN) -35.6 – $617.4
Tesla (TSLA) -37.4 – $371.4
Nvidia (NVDA) -47.2 – $294.7
PayPal Holdings (PYPL) -63.1 – $177.3
Netflix (NFLX) -56.0 – $166.5
Adobe (ADBE) -50.2 – $156.0
Source: IBD, S&P Global Market Intelligence from October 28, 2021 to October 27, 2022 name change


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