Meta Falls Again, Market Cap Collapses Below $600 Billion... Drops to 8th Place Behind Nvidia (Comprehensive)

Stock Prices Plunge Over 30% Since the Beginning of This Year

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] The stock price of Meta Platforms, the parent company of Facebook, continued its decline on the 8th (local time), causing its market capitalization to fall below the $600 billion (approximately 719.1 trillion KRW) mark. It also slipped to 8th place in market capitalization, falling behind U.S. semiconductor company Nvidia.

According to CNBC, Meta closed the day at $220.18, down 2.10% from the previous day. This is the lowest level since July 2020. Its market capitalization dropped to $59.92 billion, falling below the $600 billion threshold for the first time since May 2020.

Meta's stock price had been around $330 earlier this year, but after the earnings announcement on the 3rd, it plummeted by 31.8%, falling more than $100. On the same day, when the stock price dropped 26%, Meta lost $250 billion in market capitalization in a single day, setting a record for the largest one-day market cap loss in U.S. stock market history.

Until early this year, Meta was considered one of the five most valuable big tech companies in the U.S., alongside Apple, Microsoft (MS), Amazon, and Alphabet. However, it has now fallen behind Tesla and Berkshire Hathaway, and for the first time in history, its market capitalization is even lower than Nvidia’s. On that day, Nvidia’s stock price rose 1.5%, bringing its market capitalization to $627 billion.

However, the future impact of Meta’s market cap plunge remains to be seen. CNBC reported that Meta’s market capitalization falling below $600 billion could mean it might be excluded from the competitive law package targeting big tech companies proposed by the U.S. House of Representatives. This would allow Meta to avoid legal obstacles that apply to business and transactions. The standards have not been finalized yet, and the Senate is reportedly considering setting the threshold at $550 billion.

Meta is already under investigation and litigation by the U.S. Federal Trade Commission (FTC) over whether it abused its monopoly position in acquiring Instagram and WhatsApp. CNBC pointed out that if Meta becomes subject to the proposed legislation, such transactions may become difficult in the future.

This content was produced with the assistance of AI translation services.