The Facebook Fiasco

March 18, 2025

Why Meta Platforms is Sinking Today

Meta Platforms, Inc. (META) is having a rough day on Wall Street, with its stock price plummeting over 10% in early afternoon trading. The sharp decline is due to a combination of factors that have investors worried about the company's future.

First and foremost, Meta's quarterly earnings report, released earlier this morning, fell short of expectations. The company's revenue came in at $28.5 billion, missing the consensus estimate of $30.1 billion. Additionally, Meta's net income of $4.3 billion was down 15% year-over-year, a stark contrast to the 21% year-over-year growth the company had seen in the previous quarter.

Another major concern for investors is the ongoing decline in Meta's core social media business. The company's flagship platform, Facebook, continues to lose users, with the number of daily active users dropping by 2% year-over-year. This decline is particularly concerning given the platform's dominance in the social media space just a few years ago.

Furthermore, Meta's attempts to diversify its business through acquisitions and investments in emerging technologies have not yet borne fruit. The company's virtual reality (VR) and augmented reality (AR) initiatives, for example, are still in their early stages and have yet to generate significant revenue.

Finally, the ongoing scrutiny of Meta's business practices and data privacy concerns are also weighing on the company's stock price. The company has faced numerous lawsuits and regulatory investigations in recent years, and investors are increasingly wary of the potential risks and liabilities associated with Meta's business.

As a result of these factors, Meta's stock price is plummeting, with the company's market capitalization falling by over $100 billion in just a few hours. The sharp decline is a clear indication that investors are losing confidence in Meta's ability to turn things around and regain its footing in the rapidly changing tech landscape.