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Updated February 4th, 2022 at 11:12 IST

'Welcome to the never normal world': Uday Kotak on Meta's giant market value dip

Shares of Facebook owner Meta plummeted 26%. Kotak Mahindra Bank CEO Uday Kotak said that the drop comes as the ‘highlight of the fragility of our times'.

Reported by: Vishnu V V
Uday Kotak
Image: UNSPLASH/ PTI | Image:self
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In a major development in the market, shares of Facebook owner Meta plummeted 26 per cent on Thursday, making it the biggest single-day dip for a US company. Reacting to the dip, Kotak Mahindra Bank CEO Uday Kotak said that the event comes as a ‘highlight of the fragility’ of the current market. The banker called it unnatural and termed the event as part of the new ‘never normal world’.

Uday Kotak took to his official Twitter handle to address the issue and said that Meta dropped more valuation than India’s largest company in a single day. “Facebook Meta market value dropped ~$240 bn (18 lakh crores) in a day. That is more than the total value of India’s largest company. It highlights the fragility and fickleness of our times. Welcome to the never normal world!” he tweeted.

Kotak’s tweet came after Meta's shares dropped USD 240 billion in valuation in a day, making it the biggest ever single-day drop of any company value. The fall came after the social media giant cautioned that the revenue growth might decelerate owing to the increased competition from firms such as TikTok and YouTube, as well as with the advertisers pulling back on spending. The Mark Zuckerberg owned company issued a dismal forecast, blaming Apple Inc's privacy changes and increased competition as reasons. On Thursday, Meta shares closed at 7:59 pm GMT at a value of USD 237.76.

FB's sales growth hampered after users switched to competitors: Zuckerberg

For the very first time in its 18 years of existence, the total number of Daily Active Users (DAUs) in Facebook has witnessed a plunge. The parent company of Facebook, the Meta Networks, has revealed that the DAUs have declined to 1.929 billion in the three months to the end of December, down from 1.930 billion in the previous quarter, BBC reported. 

The Chief Executive of Social media giant, Mark Zuckerberg has also highlighted the fact that the company's sales growth has been hampered since audiences, particularly younger FB users, have switched to competitors. Apart from Facebook, in prolonged trading, shares of other competing social media platforms such as Twitter, Snap, as well as Pinterest also dropped dramatically. 

In addition to this, Meta, which operates the world's second-largest digital advertising network behind Google, claimed it was also impacted by Apple's operating system's privacy modifications. As per Meta's chief financial officer Dave Wehner, the modifications have made it more difficult for marketers to target and assess their advertising on Facebook and Instagram, which could cost them "in the order of $10 billion" this year. 

Image: UNSPLASH/ PTI

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Published February 4th, 2022 at 11:12 IST

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