Meta Platforms fell 26per cent on Feb. 3, erasing more than $200 billion in market value, after the company after reported its first ever decline in global daily active users and cited increasing competition from TikTok and other platforms in its weaker-than-expected forecast.
The selling came as institutional investors appeared to take steps back from high-flying technology names, which had helped the broad S&P 500 reach record highs in the wake of the coronavirus pandemic. Concerns about rising inflation have prompted investors to punish companies that did not meet or exceed Wall Street expectations this earnings season, while greatly rewarding those that did.
Shares of Netflix fell 20per cent on Jan. 21 after the streaming company forecasted weaker than expected subscriber growth. Shares of the company are down 34per cent for the year to date.