Meta’s Decline Signals Future Stock Market Troubles

Meta has been branded by Mark Zuckerberg as the future of technology and human life. As Meta now owns Facebook and Instagram, it also provides a virtual reality system that’s supposed to get more lifelike as time passes.

People who want to be part of the metaverse can join by putting on headsets, setting up an avatar, and then engaging with others in virtual reality.

Zuckerberg, in his quest to grow Meta, has invested quite a pretty penny into it. However, the return on investment leaves much to be desired.

In another brutal turn for Meta, it turns out the company is doing very poorly on the stock market as well.

The Greater Implications of Meta’s Poor Results
Meta is on track to hit a $76 billion market value drop, due to its low third-quarter profits and lack of earnings. If Meta continues on its current trajectory, it may no longer be counted as one of America’s biggest companies.

Though, as Meta performs poorly on the stock market, analysts anticipate that other large tech companies are currently on the same trajectory. NASDAQ 100 futures are not looking good as earnings across the board take serious hits.

Growing rates of interest are a factor in the stock market and the poor performance of many companies. Interest rates are going up at the same time as inflation. Therefore, many companies — especially large technology ones — are pulling back, cutting spending and letting go of workers.

Many company CEOs are also preparing for a possible recession.

So far, analysts don’t have a clear timeframe for when Meta or other tech companies are likely to do better and turn things around.

Deeper Problems With Meta
There’s no doubt that Meta’s performance carries significant weight with NASDAQ and can be used to predict certain stock market trends.

However, Meta itself has been facing some pushback from the general public that’s impacting Zuckerberg’s low return on investment. For one thing, many people have reservations about virtual reality becoming the new normal.