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Meta just suffered the largest one-day wipeout in US corporate history. Its valuation slumped by nearly $240 billion.

Facebook CEO Mark Zuckerberg testifies before the U.S. House Financial Services Committee during An Examination of Facebook and Its Impact on the Financial Services and Housing Sectors hearing on Capitol Hill in Washington D.C., the United States, on Oct. 23, 2019.
Meta CEO Mark Zuckerberg.Photo by Liu Jie/Xinhua via Getty
  • Meta stock slumped by 26.4% Thursday, meaning it shed nearly $240 billion in market capitalization.

  • It marked the largest one-day value loss in US corporate history.

  • Meta posted disastrous fourth-quarter earnings after markets closed on Wednesday.

Meta on Thursday suffered the largest one-day wipeout in US corporate history after posting a shocking earnings report Wednesday.

Its valuation slumped by nearly $240 billion as its shares fell 26.4%.

After markets closed on Wednesday, Meta, formerly known as Facebook, said in its fourth-quarter earnings report that Facebook's daily active user base shrank for the first time in its history. Meta also reported $10 billion in operating losses from its nascent metaverse business.

Meta's 26.4% stock slump Thursday left it valued at $661.4 billion compared with its $898.5 billion market capitalization when Wall Street closed Wednesday – a loss of $237.1 billion.

Facebook previously held the record for the largest one-day loss in value in US corporate history. In July 2018, the company shed $119 billion in market cap in a single day after reporting slowing growth in its second-quarter earnings. It was the largest one-day market cap slump at the time.

Read the original article on Business Insider