Meta Soars by Most in Decade, Adding $100 Billion in Value (nytimes.com)
- Reference: 0170262159
- News link: https://tech.slashdot.org/story/23/02/03/2127240/meta-soars-by-most-in-decade-adding-100-billion-in-value
- Source link: https://www.nytimes.com/2023/02/02/technology/meta-stock.html
> Shares of the tech giant, the owner of Facebook, Instagram and WhatsApp, climbed more than 23 percent, its biggest daily gain in nearly 10 years. And it was a huge move for a company its size, adding nearly $100 billion in market value in a single day, or about as much as Citigroup's entire market capitalization.
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> After ending last year with a loss of more than 60 percent, Meta's stock is up more than 50 percent this year, as the mood among tech investors has brightened. The Nasdaq Composite, an index that includes many tech companies, including Meta, has risen nearly 20 percent this year.
The report notes that plenty of challenges remain for the company. "Meta faces setbacks in digital advertising as clients rein in spending because of higher interest rates and inflation," reports The New York Times. "The company is also fighting to retain users drawn to newer apps like TikTok, the short-form video app that Mr. Zuckerberg considers one of his most formidable rivals. The billions that Meta is spending pursuing its founder's vision of the metaverse may not pay off."
In November, Meta laid off [3]more than 11,000 employees in what was the most significant job cuts since its founding in 2004.
[1] https://www.nytimes.com/2023/02/02/technology/meta-stock.html
[2] https://www.cnbc.com/2023/02/01/ftc-loses-attempt-to-block-meta-acquisition-of-within.html
[3] https://tech.slashdot.org/story/22/11/09/1137210/meta-cuts-11000-jobs
Up $100 billion from a $700 billion loss (Score:5, Insightful)
Meta was once worth [1]more than $1 trillion [cbsnews.com] in Sept. 2021. A year later, Oct. 2022m they lost $700 billion in value. Reality Lab alone cost them $4 billion operating losses in Q4 for a total loss of $13.7 billion.
Their metaverse is an utter joke. VRChat is eating their lunch. Meta couldn't even keep programmer John Carmack, literally a graphics guru, who co-invented the [2]First Person Shooter genre [nytimes.com], to stay due to incompetent management.
Adding a $100 billion value then they are bleeding money isn't going to fix the problem.
Meta is still billions overinflated IMHO.
[1] https://www.cbsnews.com/news/meta-stock-down-earnings-700-billion-in-lost-value/
[2] https://www.nytimes.com/2014/02/02/magazine/who-made-that-first-person-shooter-game.html
No it didn't. (Score:3)
There is no value being added. It is just how a reflection of how desperate investors are. Nothing else.
Re: (Score:2)
Pretty much this. Nothing to invest in, a weak economy and uncertainty, so investors park their money in something that at least hopefully shouldn't crash and burn within the year simply by virtue of inertia.
Rewarded for firing people? (Score:4, Interesting)
These companies get rewarded for firing people. That isn't right. Firing people en masse is actually sign of incompetent executive management. Failure to hire resources they knew what to do with. Failure to come up with ways to utilize smart people. Who's fault is that?
$100B of hot air.... (Score:3)
That can vanish again just as fast.