Yahoo Finance Live’s Brad Smith breaks down how stocks are trading following the opening bell.
The general market downdraft no doubt contributed to the decline, but the catalyst that sent the social media titan lower was likely a lawsuit filed by an activist investor. James McRitchie, a shareholder activist, has filed a lawsuit alleging that Meta and its leadership have pursued profits at the exclusion of all else, suggesting that the company's "outdated" attitude has disregarded the "high costs that Meta imposes on society and the economy." The lawsuit, which is seeking class action status, alleges that Meta Platforms has disregarded numerous "red flags" and ignored shareholder proposals regarding the harmful impact of its business and its failure to update the company's corporate governance policies.
Meta Platforms, Inc. (NASDAQ:META) is pushing multi-year lows, as the stock hovers around the $140 level. While in the short run, a company can be volatile, it is ultimately the quality of the business that determines a company's valuation. In our analysis, we will re-cap Meta's core business and attempt to evaluate how it fares against key competitors.