Facebook parent is no longer among the 10 most valuable US companies. Here’s what just made it obsolete.

Meta Platforms Inc. continues its descent through the ranks of the largest companies in the US, this time falling behind Exxon Mobil Co. for the first time in more than five years.

Facebook parent ended Thursday’s session with a market value of $366.6 billion, while Exxon XOM,
-1.54%
completed with a market value of $369.6 billion. Thursday was the first time since January 9, 2017 that Exxon had a higher market value than Meta META,
-0.54%,
according to Dow Jones market data.

Shares of Meta lost 3.7% in Thursday trading, while shares of Exxon were down just 0.2%. Meta informed staff on Thursday that this is the case enforce a hiring freezeaccording to Bloomberg News, although the company declined to comment on MarketWatch’s request and referenced comments from Chief Executive Mark Zuckerberg on the company’s recent conference call when he said the company “will expect headcount growth over the next want to steadily reduce every year”. .”

During the S&P 500 SPX,
-1.51%
While down 24% year over year, Meta shares have seen steeper declines, and are down about 59% over the course of 2022 so far. The plunge just in December took Meta from its position as the fifth-biggest US public company by market value to now the 11th-biggest, with the most recent shift under Exxon.

While it’s been years since Meta was less valuable than Exxon, it’s been less than two months since Meta last ranked 11th, which took place on August 1, back when Nvidia Corp. NVDA,
-0.66%
still in the top 10.

Meta’s market value peaked at $1.078 trillion on September 7, 2021.

Meta is grappling with broader macroeconomic concerns about the state of the advertising industry, as well as some of its own challenges that have weighed on shares in recent months.

The company has attempted to respond to TikTok’s rapid rise by launching its peer Reels platform, which is catching on, but executives have warned that Reels currently has a lower rate of monetization than more established forms of meta and Instagram content. Meta must also address privacy-related changes made by Apple Inc. AAPL.
-3.00%
affecting targeted advertising.

Apparently TikTok isn’t the only burgeoning competitive threat facing Facebook and Instagram, as Bernstein analyst Mark Shmulik pointed out earlier this week that BeReal, a less curated social media platform that encourages users to share photos at a different time each day, this was the top-downloaded iOS app in the US so far this quarter.

https://www.marketwatch.com/story/facebook-parent-meta-is-no-longer-one-of-10-most-valuable-u-s-companies-heres-what-just-overtook-it-11664483928?rss=1&siteid=rss Facebook parent is no longer among the 10 most valuable US companies. Here’s what just made it obsolete.

Brian Lowry

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