Facebook On the Verge of Posting its Largest Daily Stock Decline in Company History

With shares down 22% in AH’s, FB shareholders are about to be entreated with the largest stock price decline in company history tomorrow.

This was the news:

Meta Platforms misses by $0.16, reports revs in-line; guides Q1 revs below consensus due to ad impression and pricing related factors

Co issues downside guidance for Q1, sees Q1 revs of $27.0-$29.0 bln vs. $30.27 bln S&P Capital IQ Consensus.

On the impressions side, FB expects continued headwinds from both increased competition for people’s time and a shift of engagement within its apps towards video surfaces like Reels, which monetize at lower rates than Feed and Stories.
On the pricing side, FB expects growth to be negatively impacted by a few factors:

First, FB will lap a period in which Apple’s iOS changes were not in effect and FB anticipates modestly increasing ad targeting and measurement headwinds from platform and regulatory changes.

Second, FB will lap a period of strong demand in the prior year and FB is hearing from advertisers that macroeconomic challenges like cost inflation and supply chain disruptions are impacting advertiser budgets.

Here were some of the previous large stock price declines for FB in a single day.

With the AH’s plunge, FB is now trading at 17.5x PE and 5x forward sales, marking the low point on a valuation basis for the company. In other words, the stock has never been cheaper.

Curious what the market did in July 2018 when FB dropped 18%? Three long days of losses for the QQQs.