Nvidia has now surpassed Meta (formerly Facebook) to become the 7th largest company in the US (8th worldwide). This is partly due to Meta’s recent share price collapse after its latest earnings call.
This past week, Meta’s share price drop saw 30% of its share value wiped out. The company lost about $260B in market cap in just a week. The company is now worth just $663.28B, far from the $1T valuation in September last year.
Meta and Facebook collapse
Meta’s share price collapse was partly because Facebook lost users for the first time since its inception. Meta also dug its own grave by seemingly threatening to shut down Facebook and Instagram in Europe entirely. The company later cleared this up by saying they had no desire to withdraw from Europe.
On the other hand, Nvidia has a market cap of $665.48B, which is not that far from Meta. All of this is despite Nvidia having a rough week due to the FTC blocking the company’s $40 billion acquisition of ARM. Currently, Nvidia places just below Berkshire Hathaway in 6th place with a market cap of over $720B.
You might wonder how this is possible with an ongoing semiconductor shortage. Surprisingly, the company made a lot of cash in its final quarter of 2021. This might be due to increasing demands for PCs due to work from home culture.