Why Meta Stocks Crashed Because of Apple?

Today, February, 3, 2021, Meta stocks crashed with 25%, let’s see what role does Apple play…

Photo by Thought Catalog from Pexels

For those of you who opened too late the internet, Meta is Facebook, but Mark Zuckerberg changed the company name a couple of months ago. Because when you think or say the word metaverse you will instantly think at the Meta.

Meta was one of the most profitable companies on the market, but still the stocks dropped down.

Why?

The company, which announced profits under its new name (Meta) for the first time with a new reporting structure, missed earnings projections for the fourth quarter, coming in at $3.67 vs $3.84 analysts expected. However, revenue for the quarter was more than expected, at $33.67 billion vs $33.4 billion.

Apple’s iPhone privacy improvements, which affect ad targeting and measurement, are expected to cost the business $10 billion this year, according to the company. Advertiser budgets are also being weighed down by macroeconomic difficulties such as inflation and supply chain interruptions, according to the report.

Following Facebook’s drop, other social media stocks were down on Thursday. Snap’s stock was down more than 23% before the company’s earnings release after the bell on Thursday. Pinterest shares were down more than 10%, while Twitter shares were down more than 5%.

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