Meta set for US$200b wipeout, among worst in market history

[NEW YORK] Facebook parent Meta Platforms is set to shed about US$200 billion in market value, in what would be one of the biggest one-day market capitalisation wipeouts for any company on record.

Shares in the social media giant slumped as much as 22 per cent in pre-market trading after it gave a forecast for the first quarter that missed estimates amid stagnating user growth and increasing competition from TikTok.

If those losses hold, Meta could see nearly US$200 billion in value wiped out - more than the current market capitalisations of 460 of the S&P 500's members.

Meta's drop also dragged social media peers Twitter, Snap and Pinterest lower in US pre-market trading and put pressure on Nasdaq 100 Index futures. The tech-heavy gauge looks set to end a four-day rally prompted by good earnings from companies including Alphabet.

Several Wall Street firms slashed their price targets on Meta shares after the results, with Morgan Stanley's Brian Nowak saying that the company's Reels product faces competition from TikTok and noting advertising revenue headwinds. Still, he remains bullish on the longer-term opportunity.

Meta was trading 19 per cent lower at US$260.55 as of 4.35 am in New York.

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