S&P 500: Mark Zuckerberg’s Pipe Dream Turns Into $588 Billion Nightmare

Mark Zuckerberg’s plan to dominate the metaverse is popping right into a nightmare for everybody. And it is costing the actual world severe money: $588 billion to be actual.

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Shares of S&P 500 member Meta Platforms (FB), the corporate previously generally known as Fb, crashed anew in late buying and selling Wednesday following a dismal earnings report.

After this newest leg down, practically $600 billion in market worth has vanished because the firm introduced its new identify practically a 12 months in the past on Oct. 28, 2021.

Meta Ache Getting Main

Meta’s main wipeout is spreading ache all through the S&P 500. Bear in mind this firm was value practically $900 billion a 12 months in the past. It constantly ranked among the many high 10, if not high 5, most vital holdings within the S&P 500.

Now, it is valued at simply $293 billion — marking one of the crucial colossal falls in S&P 500 historical past. Even the epic crash of Enron price buyers much less ($75 billion). And Meta is now solely the fifteenth largest holding within the S&P 500, behind Chevron (CVX) and Johnson & Johnson (JNJ).

And Meta’s market worth loss is rivaling these of Microsoft (MSFT) and Alphabet (GOOGL) within the bear, regardless of these firms being a lot bigger.

Meta’s Ache Hurts Everybody

There is no query who the largest loser from Meta’s transfer is: Zuckerberg himself.

Zuckerberg has watched as $72 billion of his Meta holdings have gone up in smoke since Oct. 28, 2021. He is nonetheless the single-largest holder of the inventory. Zuckerberg owns practically 13% of the corporate with 348 million shares.

However the losses are ballooning. Meta’s largest house owners are main mutual fund and ETF firms. It is a practically 1% place within the S&P 500, however a lot bigger in different extensively held ETFs.

Meta is a key 17% piece of the Communications Companies Choose Sector SPDR (XLC) ETF. And it is nonetheless the seventh largest place, accounting for two.5%, in Invesco QQQ Belief (QQQ).

The query is when will buyers step in and include the insanity? Activist buyers solely personal a small slice of the corporate, says S&P World Market Intelligence. Every owns lower than 0.2% of the corporate, together with New York State Widespread Retirement Fund, D.E. Shaw and Davis Chosen Advisors.

When will the Meta nightmare finish?

Largest Drops In Market Worth Since Meta’s New Identify

Firm	Ticker	Inventory % ch.	Market worth ch. since Meta identify change ($ billion)
Microsoft	(MSFT)	-28.7%	-$710.8
Alphabet	(GOOGL)	-34.9	-$706.6
Meta Platforms	(META)	-65.6	-$588.2
Amazon.com	(AMZN)	-32.9	-$569.1
Tesla	(TSLA)	-37.4	-$372.3
Nvidia	(NVDA)	-48.3	-$301.5
PayPal Holdings	(PYPL)	-62.6	-$175.9
Netflix	(NFLX)	-55.7	-$165.7
Adobe	(ADBE)	-49.9	-$155.2

Sources: IBD, S&P World Market Intelligence from identify change on Oct. 28, 2021, Meta inventory worth in after-hours buying and selling on Oct. 26, 2022