FB's value is determined by investors' expectations of future cash flows (dividends to equity holders) discounted to present value at a certain rate.
Today's price change means people expect to receive less dividends from FB in the future.
That cash flow can come from a variety of businesses within Meta, including WhatsApp.
It stands to reason that Facebook (as in the "facebook.com" component of Meta) is now regarded by these investors as being worth less than they thought before due to the fact that the company reported a decline in the number of users for the first time in its history.
It'll soon be worthless. VR is not a moat and it's unlikely Zuckerberg will manage to convince people that putting on a VR headset and hanging out in a virtual space is going to be preferable to hanging out in real life. I'm surprised there wasn't a bigger selloff. At some point the US government will also start tightening data sharing requirements and at that point their ad targeting will be essentially be non-functional.
As a practical matter, I'm not sure to what degree it makes sense to think of stock prices in those terms these days. But, yes, stock price in principle is the net present value of dividend flows.
It is also reasonable to ask what the more mercenary employees or would be employees of companies like Facebook do when stock becomes a lot less attractive.
Today's price change means people expect to receive less dividends from FB in the future.
That cash flow can come from a variety of businesses within Meta, including WhatsApp.
It stands to reason that Facebook (as in the "facebook.com" component of Meta) is now regarded by these investors as being worth less than they thought before due to the fact that the company reported a decline in the number of users for the first time in its history.