--- title: Why did Meta lose $200B+ in value? - The Hustle description: "Meta is facing many challenges: stalling growth in its user base, the rise of TikTok, and Apple’s new privacy changes." image: https://hs-sbup.thehustle.co/hubfs/The%20Hustle%20News/Assets/Images/1602202494-News-Brief_2022-02-04T012533.308Z.webp --- # Why did Meta lose $200B+ in value? ![Trung T. Phan](https://thehustle.co/wp-content/uploads/2020/04/Image-from-iOS-300x300.jpg?width=48&height=48&name=Image-from-iOS-300x300.jpg) [Trung T. Phan](https://hs-sbup.thehustle.co/author/trung-t-phan) [Trung T. Phan Twitter profile ](https://twitter.com/TrungTPhan) Published: February 04, 2022 Updated: October 11, 2023 The phrase “Big Tech” commonly refers to Amazon, Apple, Google, Microsoft, and the artist formerly known as Facebook (Meta). ![Why did Meta lose $200B+ in value?](https://hs-sbup.thehustle.co/hs-fs/hubfs/The%20Hustle%20News/Assets/Images/1602202494-News-Brief_2022-02-04T012533.308Z.webp?width=595&height=400&name=1602202494-News-Brief_2022-02-04T012533.308Z.webp) The moniker may have to change: Meta had its biggest one-day drop ever, falling 20%+ and losing $200B+ of market value. #### **What happened?** The sell-off came after Meta’s latest earnings report, per [*CNBC*](https://www.cnbc.com/2022/02/03/facebook-shares-plummet-22percent-after-reporting-weak-guidance.html): - **Slowing sales:** Meta revenue hit $33.7B in the last quarter but its guidance for Q1 2022 ($27-$29B) was below expectations - **The Apple effect:** New changes to iPhone’s privacy policy will cost Facebook’s ad business an estimated $10B this year Meanwhile, Facebook’s daily users — 1.93B — [declined](https://www.dailymail.co.uk/news/article-10471227/Facebook-loses-users-time-Zuckerberg-blames-TikTok-boom.html) from the previous period with attention moving to other platforms, namely TikTok. #### **Can Meta come back?** Nikita Bier — a former Facebook exec whose startup was acquired by the social network — highlights the challenges in a viral Twitter [post](https://twitter.com/nikitabier/status/1489007202056634370?s=21): - **High-value users** (e.g., US coastal) are leaving Facebook and going to TikTok - **M&A options** are off the table due to antitrust scrutiny - **Founders** are choosing not to work at Meta, which means it can’t build new products Further, Meta’s big bet on the metaverse… #### **… will take 10 years to play out** Bier does say that Zuck is the “greatest operator” in the world. He’s also the only founder left running a Big Tech firm, putting him in the driver’s seat — with full control — to pivot the company. In the meantime, though, Meta (worth ~$670B) may have to be downgraded from “Big Tech.” Why? All the other firms are worth at least $1.4T. 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