about 2 years ago • 1 min
Meta stock tumbled 20% in pre-market trading on Thursday after its main Facebook app reported the first decline in user numbers in its 18 year history.
For years, Facebook has vied with Alphabet’s Google for supremacy in the fast-growing market for digital advertising. According to eMarketer, Facebook took 24% of all global spending on digital ads last year while Google took 29%. This dominance has led to the pair being dubbed a “duopoly” – particularly by the media brands who’ve lost ad dollars to them.
The chart above shows how shares in Meta and Alphabet tracked each other pretty closely since Meta’s 2012 initial public offering (IPO).
As of last year, $100 invested in each stock in 2012 would have grown to about $1,000. But following earnings updates this week from both companies, their performance has finally broken apart. The dotted blue line shows where Meta stock is likely to open on Thursday, based on pre-market trading. What was worth $1,000 a year ago is now only worth about $675.
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