Social media platforms saw their shares fall after Facebook’s fourth-quarter revenue and poor forecasts on Wednesday.
Meta posted a 21% decline in its quarterly report, reducing its stock market value by about $200 billion. Social media platforms that declined according to the report included Twitter and Pinterest, both of which declined by about 10%.
As a result, the two companies lost more than $4 billion of their market capitalization, while others affected include Snap, which lost 8% and $9 billion in stock market value, Amazon, which lost 3%, and Alphabet, which lost 1.9%.
Michael Farr, chief executive of Farr, Miller & Washington LLC, said: “This is a very unforgiving environment and this is likely an over-reaction for companies with strong balance sheets. But we are seeing clearly that investors are skittish and they will hit the sell button first and ask questions later.”
Meta is forecasting first-quarter revenue of between $27 billion and $29 billion, below analysts’ $30 billion estimates, and the company’s 21 percent drop marks its worst one-day loss since its debut on Wall Street in 2012.
For more information, read the original story in Reuters.