Facebook parent Meta opens 24% lower after weak earnings

[NEW YORK] Shares of Facebook parent Meta plunged more than 25 per cent early Thursday, shaving roughly US$200 billion off the firm's value and weighing on the Nasdaq as well as threatening the stock market's four-day winning streak.

The technology giant late Wednesday had reported weaker-than-expected profits following a loss of one million daily users globally on its signature platform.

Meta shares were down 25.6 per cent shortly after the opening, resulting in a roughly US$200 billion hit to the company's market value.

The dramatic sell-off is the latest to confront a big tech firm after a similar liquidation of Netflix shares last month. Other tech giants such as Apple and Google parent Alphabet have rallied after results.

About 20 minutes into trading, the tech-rich Nasdaq Composite Index was down 2.2 per cent at 14,105.30.

The Dow Jones Industrial Average fell 0.8 per cent to 35,332.58, while the broad-based S&P 500 dropped 1.5 per cent to 4,520.99.

Stocks have risen the last four days as the markets try to rebound from a bruising January pressured by worries over shifting Federal Reserve policy and uncertainty over Ukraine.

But the shap fall in Meta and some other tech names "is raising doubts about the sustainability of the broader rebound effort seen sessions," said Briefing.com analyst Patrick O'Hare. AFP