The Fall In Facebook Stocks Looks Set To Continue

A combination of unfortunate events for Facebook has seen their stocks start to suffer. Meta Platforms, Inc., the company formerly known as Facebook, Inc., and TheFacebook, Inc., is likely to see it’s stocks continue to fall.

Let’s have a closer look at why…

Falling Stock Price

On the last day of August alone, Facebook’s stock fell by 1.26%.

While this may not sound a lot, it follows an overall trend for the once thriving company’s stocks. For example, just last week, Facebook stocks fell by 3.05% and in the last month, they fell by 4.06%, so it seems that Meta is battling a continuous loss.

Why Is This Happening?

February 2022

At the beginning of the year, the company forecasted weaker-than-expected revenue growth for the following quarter.

It also faced its first ever decline in users year over year which may have contributed to its lack of revenue growth. Furthermore, Meta have also said they have been impacted by Apple’s privacy changes at the same time as facing their first quarterly decline in daily active users on record.

July 2022

This was not an isolated incident, as almost six months later, Meta faced another significant drop in value.

This happened directly after the announcement of second-quarter earnings that were below expectations.

Simultaneously, investors were unsettled by Meta’s worrying revenue forecast as well as their continued difficulties with their online advertising business. This comes as a result of Apple’s change in their privacy policy and a much harsher economic environment which is shrinking ad budgets.

It appears as if the grip on social media and the world that Meta once held is beginning to slip and their stock price reflects this.

It is a continuous problem that makes the company look very unattractive to day traders. With other social media companies’ stocks seemingly following suit, it seems like a worrying time for any trader involved in stocks of social networking sites.