Several tech companies are having a hard time on the stock market right now. The Facebook empire Meta’s price collapse of 26.4 percent may signal something about the future.
- It is not the result that scares, it is the forward-looking, says savings economist Joakim Bornold.
Meta Platforms, the company behind Facebook, has had a tough time lately. It shows the company’s quarterly report. The growth in the number of users has decreased and the competition for advertising revenues has intensified. It is mainly new players such as Tiktok that are growing strongly and taking market shares.
- Facebook is the sun that everything else revolves around when it comes to social media. If the sun shines a little dimmer, it will have major consequences for the share price, says Joakim Bornold, savings economist at Söderberg & partners.
Swaying future
When the New York Stock Exchange closed on Thursday, the company lost more than a quarter of its value, corresponding to almost SEK 2,200 billion. According to Joakim Bornold, it is not the report itself that caused the share to fall.
- It is not the result that scares, it is the forward look. What Facebook says about the future and there it looks quite swaying, says Joakim Bornold.
“The balloon must get a little boy punk”
Tech companies are generally having a hard time on the stock market right now. The music service Spotify also showed an unexpectedly weak report and fell sharply on the US stock market. According to Joakim Bornold, the explanation is completely natural. A sector that has been very popular tends to calm down over time and become cooler.
- The tech companies have been very hot the last two years, somewhere that balloon must get a little boy punk. Will it come back? Yes, it is quite likely, he says.
Source: svt/The Financial Eye
