By Emily Bary
Facebook was a member of the exclusive $1 trillion club a year ago, but it’s fallen a long way since then.
Now named Meta Platforms Inc. /zigman2/quotes/205064656/composite META -2.00% , the company saw its market value fall below $400 billion Friday for the first time since Jan. 7, 2019, according to Dow Jones Market Data. Meta’s valuation is 63.5% lower than its Sept. 7, 2021, peak of $1.078 trillion.
The Meta meltdown: This chart shows Facebook’s fall from grace among the most valuable U.S. companies
Meta shares dropped 2.2% Friday, closing the week down 13.5% after registering declines in all five sessions. Friday’s fall brought Meta shares to their lowest close since March 16, 2020, when they finished at $146.01, according to Dow Jones Market Data. Any close below that point would see Meta officially erase all of its pandemic-era stock gains.
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The swift decline in Meta shares in recent months reflects more than just macroeconomic fears. Yes, Meta is exposed to pullbacks in advertiser spending due to a weakening economy, but the company must also contend with TikTok’s rising competitive threat, as well as the lingering impacts of Apple Inc.’s /zigman2/quotes/202934861/composite AAPL -0.54% privacy-related changes that affect ad targeting.
Meta is now the 10th most valuable U.S. company by market capitalization, after falling behind Visa Inc. /zigman2/quotes/203660239/composite V +0.51% earlier this week. While Meta shares are off 61% over the past 12 months, Visa’s stock has only fallen 14%, and the payments giant’s business has been seen as relatively resilient in the current climate given that overall consumer spending levels remain healthy.
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Now Meta risks dropping out of the top-10 entirely: The company finished Friday’s session with a $393.2 billion valuation, while 11th-place Exxon Mobil Corp. /zigman2/quotes/204455864/composite XOM -1.50% ended at $388.5 billion.