Meta Platforms (formerly Facebook)’s stock price plunged day after day, with its market capitalization falling to around $500 billion. As a result, it fell to eighth place in the market capitalization of U.S. companies, behind semiconductor company NVIDIA.
Facebook once had a market capitalization of over $1 trillion, making it one of the top five U.S. companies. companies.
Currently, American companies’ market capitalization ranks in the order of Apple ($2.8 trillion), Microsoft ($2.28 trillion), Alphabet ($1.8 trillion), Amazon ($1.6 trillion), Tesla ($950 billion), Berkshire ($719 billion), NVIDIA ($623 billion), and Facebook ($599.3 billion).
On the New York Stock Exchange on the 8th (local time), Facebook recorded $220.18, down 2.10% from the previous trading day. Facebook plunged more than 2% despite a rally in technology stocks, with NASDAQ rising 1.28%.
On the previous day, Facebook also plunged 5.14% from the previous trading day to $224.91.
As a result, Facebook’s market capitalization has fallen to around $500 billion. As of this day, Facebook’s market capitalization is $599.3 billion. This is less than NVIDIA, the seventh-largest semiconductor company.
This is because Facebook is known to have warned that it may suspend Facebook and Instagram services in Europe if information sharing negotiations with European authorities fail.
Earlier, the European Court of Justice (ECJ) ruled that data movement standards between Europe and the United States did not adequately protect the personal information of European citizens. As a result, European regulators have currently entered into legislation that newly regulates the process of EU users’ information being handed over to the United States.
The ECJ took such measures because the U.S. government authorities can access user information that has moved to the U.S. In fact, U.S. intelligence agencies can request user information from Internet companies such as Facebook.
As the EU increased pressure on Facebook, Facebook seems to have expressed its willingness to withdraw its services. Europe is the largest market except the United States. Stock prices are believed to be falling day after day because if the actual withdrawal is made, it could have a significant impact on Facebook’s performance.
