Facebook shares have plummeted 25% today, which is on pace for the tech giant's largest one-day drop ever and could wipe $200 billion from the company's value.
The steep decline comes on the heels of Facebook's disastrous earnings report, which revealed that earnings for the last quarter of 2021 came in below expectations. The company, now called Meta, also forecasted first-quarter revenue between $27 and $29 billion, below analysts' predictions of just over $30 billion.
Meta's drop in earnings comes amid a decline in daily active users, a first for the company. It also cited stiff competition from TikTok, pressures from inflation and the supply chain, and other disruptions at advertisers' companies. It also says it is focusing on developing new products that are more difficult to monetize.
This stock plunge is just the latest in a series of business and public relations woes Facebook has faced recently, including its lackluster rebranding to Meta. That came shortly after a high-profile whistleblower controversy, in which a former employee leaked internal documents and accused the company of putting profits above all else, including its users' health and safety, by not doing enough to stem the tide of dangerous misinformation on its platforms.