Facebook parent Meta continued its slide on Tuesday and has now dropped so much in the past week that the company is worth less than chipmaker Nvidia.
Meta shares dropped 2.1% to close at $220.18. The stock is down 35% this year and is trading at its lowest since July 2020.
Not long ago Facebook was among the five most valuable U.S. companies, alongside Big Tech peers Apple, Microsoft, Amazon, and Alphabet. However, Meta has since fallen to eighth, below Tesla, Berkshire Hathaway, and now, for the first time, Nvidia.
On Tuesday, Meta’s market cap dropped to $599 billion, while Nvidia closed at $627 billion. Visa is next at $478 billion.
Nvidia announced overnight that it was ending its effort to buy chip technology firm Arm and would pay a breakup fee of $1.26 billion to Arm parent SoftBank.
Nvidia scrapped the deal amid hefty regulatory challenges, including a probe in the U.K. and a lawsuit from the U.S. Federal Trade Commission.
Nvidia rose 1.5% on Tuesday to $251.08 and has been on a tear over the past two years, soaring over 300% since the start of 2020. The company has lost about 15% of its value since the start of the year as investors have sold out of risky tech stocks.
Nvidia, which reports fourth-quarter earnings next week, has been boosted by strong chip sales as its graphics processors are in high demand for artificial intelligence applications and advanced video games.
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Meta, on the other hand, has been falling since reporting fourth-quarter earnings last week.
The company showed a drop in user numbers and warned about challenges ahead from Apple’s privacy changes. Meta’s first-quarter forecast missed estimates, sending the stock down a record 26% on Thursday.