The Collapse of Meta: This chart shows Facebook’s fall among America’s most valuable companies

Shares of Meta have been penalized this year, however, amid concerns about competitive dynamics and the impact of economic uncertainty on ad revenue. That $1 trillion market capitalization has more than halved, allowing several companies to move ahead of Meta – which announced its new corporate name last October – on the valuation chart.

Visa was valued at $413 billion at Tuesday’s close, compared to $412 billion for Meta. Exxon Mobil Corp. XOM,
-2.34%
is next on the list with a market capitalization of $397 billion, according to Dow Jones Market Data. Above Visa are still the other four Big Tech companies of Apple, Microsoft, Alphabet and Amazon, as well as Tesla Inc. TSLA,
-4.04%,
Berkshire Hathaway Inc. BRK.A,
-3.32%,
UnitedHealth Group Inc. UNH,
-3.25%
and Johnson & Johnson JNJ,
-2.60%.

Meta’s stock suffered its biggest daily decline since February in Tuesday’s session amid general market pressure from the latest Consumer Price Index reading, which resurfaced fears regarding the potential effects of inflation on the advertising landscape.

“Meta, like other social media companies, has been negatively impacted by Apple’s actions in the advertising industry as well as the general anticipation of lower advertising spend as we may enter a recession,” said Nick Mazing, the director of research at Sentieo, which has been tracking market values ​​over the past few weeks.

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“Additional factors include competition from TikTok and investor skepticism of the company’s metaverse efforts,” Mazing said.

Meta executives have warned of the impact inflationary pressures and other economic issues could have on the company, Sheryl Sandberg, the company’s then chief operating officer, telling investors on the latest call for Meta findings that “recessions put pressure on marketers to make sure their ad budgets are spent in the smartest way possible,” though she thinks Meta tools could help them maximize their investments.

Chief Executive Mark Zuckerberg said on that July call that “we appear to have entered an economic downturn that will have a broad impact on the digital advertising industry.”

Visa shares held up better in the inflationary environment, falling only 8% for the year, with Meta shares losing 54%.

While Meta executives sounded cautious about the current landscape, Visa’s management team sounded more optimistic due to the nature of the payments giant’s business. In April, Visa Chief Financial Officer Vasant Prabhu said inflation had been “net-net” positive for Visa, and as recently as Monday he said consumer spending remained resilient.

Visa “is somewhat insulated from the big macro story, persistent inflation, as it’s paid on nominal volumes,” Mazing told MarketWatch, noting that the company also benefited from the big rebound in international travel and spending that accompany him. .

Meta briefly flirted with placement outside the top 10 of America’s most valuable companies in early August, but its dive under Visa this time around keeps it in the top 10 as technology company Nvidia Corp. NVDA,
-9.47%
has also seen its value fall sharply in recent weeks.

Nvidia ranked seventh by market capitalization earlier this year, but now sits in 15th place with a valuation of $327 billion, according to Dow Jones Market Data, amid inventory issues that have plagued total revenue and a US crackdown on high performance sales. artificial intelligence technology to China.