Big Technology Podcast Meta's Stock Plunge + Market Volatility — With Josh Brown of Ritholtz Wealth Management
Feb 9, 2022
Join Josh Brown, CEO of Ritholtz Wealth Management and CNBC contributor, as he delves into the shocking $251 billion drop in Meta's stock. He discusses market phenomena like 'whisper' earnings and why growth stocks may be losing their appeal. The conversation turns to Meta's rebranding challenges and competition with TikTok and Alphabet. Brown also highlights shifts toward short-term profits amid rising interest rates, alongside the volatility in biotech and cryptocurrency markets that investors must navigate.
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Whisper Numbers and Market Reactions
- There's a "whisper number" beyond official estimates, representing what the street really expects.
- This whisper number, combined with algorithmic trading, drives rapid market reactions, not just the actual earnings.
Market Cap Fluidity
- Market cap is a fluid concept, not a fixed asset.
- Money lost in market cap isn't destroyed; it shifts to other companies, reflecting investor sentiment.
Facebook's Volatility
- Facebook's stock drop impacts employee compensation, but Silicon Valley is less shocked by volatility.
- Tech companies like Facebook have seen big swings before, making a 25% drop less surprising than for a blue-chip company.
