‘Facebook Face-Plants’: First-Ever Dip in Active Users Sends Stock Spiralling, Drives Down Big Tech Stocks

Meta, Facebook’s newly re-named parent company, was trading down some 26% on Thursday as the company reported weak revenue growth and a dip in daily active users – for the first time.

David Asman reported the news on Fox Business Network, saying, “Facebook face-plants. I love that. I love that alliteration, but it is no laughing matter.”

Asman then turned the report over to Lauren Simonetti who explained the market downfall.

“Where was the warning?” Simonetti said, “That is what a lot of investors are saying today. If you look at this record decline in the price of the stock, $200 million, David, in market value wiped just like that.” Simonetti misspoke a bit, meaning to say $200 billion.

“Facebook is blaming inflation and competition. Inflation impacting advertiser budgets and then TikTok taking the eyeballs of younger users,” she continued. “So, Facebook reported a dip in daily active users for the first time ever.”

“Here are the numbers: 1.929 billion from 1.93 billion, but it fell is the point and that has never happened. Then you look at its outlook for the current quarter and that too is disappointing,” Simonetti added, explaining, “They’re expecting revenue between $27 and $29 billion.”

“Critics say CEO Mark Zuckerberg has lost his way here, calling the pivot to the Metaverse, which is what they call the company we call Facebook, they’re calling that as a distraction, that comes at a cost for $10 billion for all of last year,” she continued.

Simonetti then noted that Facebook was dragging down the entire tech sector, “Take a look at the collateral damage here. Names that rely on online advertising including Snap, Pinterest, Twitter, Amazon, sharply lower today.”

Simonetti concluded with a breakdown of what is expected from Amazon’s revenue announcement tomorrow, noting there is some room for hope, but added that Amazon is expected to up its price for Amazon Prime, in order to keep up with inflation.

Watch above via Fox Business