Dusseldorf Falling earnings and a weaker outlook sent Meta (formerly Facebook) stock down 26 percent on Thursday. This was the first technology heavyweight this year. But it is striking that despite the bad news, investors did not sell all technology stocks in a panic.
Investors are still rewarding the continued strong business of many tech heavyweights. On the other hand, the grace period for corporations whose prices have risen sharply for years but which do not live up to investors’ expectations is over. A drop in earnings of almost four percent, as analysts are now forecasting for Meta’s full year, does not fit with a price jump of almost 700 percent since the company’s IPO in May 2012.
There is another way: Just one day before Meta, a jump in sales and profits had helped Google’s parent company Alphabet to jump again by eight percent. Here the quarterly result was well above the expectations of the analysts.
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