Meta Stocks See Major Drop, Can It Possibly Recover?

The stock market continues to witness a significant downfall fueled by international macroeconomic issues. And as the world starts to settle in for what could possibly be a long recession, companies, especially big tech giants, are seeing the worst of it so far. The best thing that most individuals could do so far is to find some of the relevant issues that the market is facing at the moment and find solutions to them.

One of the biggest tech companies to struggle with the dropping price was Meta, the company formerly known as Facebook. As the biggest social media platform in the world, Facebook made a big change in both the direction that it wants to be taking as a company and the products and services that it will now be offering.

To say that this change was a little polarizing to many people who were not familiar with this change is polarizing, to say the least. Many have brought up questions about the efficacy of the new business model, and if it is even sustainable.

And as the company moves full speed ahead into the Virtual reality space, it will have to look back at the damage that these decisions are doing to its stock price.

Bad Big Tech Earning Report

In the most recent Q3 earnings report, Meta saw some of the worst returns out of all the other tech firms. In fact, the drop in the earnings report was so concerning that all investors had to turn their attention to it.

In a grand total, Meta missed its earnings expectations by a shocking 13%. Following the report’s publication, many companies said that the company is not doing so well because it is staying away from its core business model. If it fails to get that right, it will falter.

What Sparked the Sell Off?

The most important thing to understand about Meta and its most recent push is that not many investors seem interested in the project, as it took too much focus away from other important aspects of the business. Therefore, many were expecting that the reports will shine a light on the poor decision, and then the company will move back to other projects.

However, comments from Mark Zuckerberg and how he was still looking to pursue his current business objectives is what led to the major sell-off.

Can It Bounce Back?

As the company continues to struggle with worsening investors returns, there is still hope for Meta. Investors would be willing to give the platform a chance if they focus more on other projects. Furthermore, the actual updates to the Metaverse have been lackluster at best, which is why many investors are not holding out hope for the project.