Why Stock Prices Move
Meta, and Amazon, and Stock Prices Oh My
We just had a crazy week in the markets with some of the largest companies in the world seeing their stocks trade like Sh!tCoins
FaceBook, sorry “Meta” dropped ~$80 Billion over night, almost 25%. And Amazon dropped $120 Billion also overnight, also around 20%.
This isn’t the only bad news, Since Sept 2021 Meta’s price dropped from ~$380 per share high to under $100 today. That is going from $1 Trillion to $250 Billion market cap, or a ~75% decrease in market cap
If you are new to investing, you may be asking how this could possibly happen. How does a huge company suddenly lose $100s of billions in value so quickly? Isn’t the market efficient? (Ha)
Buckle up, there is a lot jam-packed into here.