Meta Is The S&P 500’s Worst Performer Of 2022 As Losses Near 75%

Author image

Derek Saul   Forbes U.S. Staff

Meta Is The S&P 500’s Worst Performer Of 2022 As Losses Near 75%

Zuckerberg. Image from Twitter.

Topline

Shares of Facebook parent Meta overtook the dubious honor as the biggest loser on the S&P 500 this week as the Silicon Valley giant bleeds money to fund its CEO Mark Zuckerberg’s metaverse vision and underscores big tech’s 2022 downfall.

Key Facts

Meta stock has faltered all year, but crashed 25% last Thursday after reporting concerning quarterly earnings and is down a further 11% this week to a seven-year low of below $90.

The social media titan is down 73.7% year-to-date and nearly 80% from its 2021 high of $384.

The most recent dip was enough to overtake the S&P’s prior worst performer, Invisalign maker Align Technology, which is down 73.2% in 2022.

Meta’s crash has been much more impactful than Align’s, accounting for 0.7% of the S&P’s weight compared to 0.04% for Align.

Key Background

Meta’s market capitalization of $236 billion is a far cry from its $1 trillion market cap last summer, and the company is now just the 34th largest public company in the world after ranking as high as fifth. The company changed its name from Facebook to Meta last fall to reflect its pivot to augmented reality, or the metaverse. The metaverse has proven to be an unmitigated disaster for Meta, reporting $9.4 billion in losses in the division year-to-date as macroeconomic headwinds further eat into its bottom line. The company reported a 49% decline in profits, buoyed by a decline in its advertising business, last Wednesday, sending the stock spiraling.

Big Number

48%. That’s how much the FAANG group of tech giants (Facebook parent Meta, Amazon, Apple, Netflix and Google parent Alphabet) is down collectively year-to-date. That far outpaces the 22% decline for the S&P, weighed down by the five companies that account for 12% of the index’s weight.

Forbes Valuation

Zuckerberg’s net worth has fallen by $104 billion over the past year to $32.8 billion, according to our calculations. The third-wealthiest person in the world as of last October, Zuckerberg is now the 29th-richest.

Author image

Derek Saul   Forbes U.S. Staff

I'm a New Jersey-based news desk reporter covering sports, business and more. I graduated this spring from Duke University, where I majored in Economics and served as sports editor for The Chronicle, Duke's student newspaper.