Yahoo Finance

Visit Yahoo Finance. Select a public company that has not been selected by another student in the discussion and look up the company’s stock’s performance over the last year. Discuss which company you selected and its performance.
What do you think are the market forces that might have influenced the value of the company’s stock at its peaks and valleys?
What do your findings indicate about your selected company’s financial health?

Full Answer Section

   
  • The increasing competition from other tech giants: Meta is facing increasing competition from other tech giants, such as Google and Amazon, in the advertising market. These companies are investing heavily in new technologies and features, which is putting pressure on Meta's margins.
  • The ongoing concerns about user privacy: Meta has been under fire for its handling of user privacy, and this has led to some users deleting their accounts. This has also hurt the company's advertising business.
  • The economic slowdown: The global economy is facing a slowdown, and this is also having an impact on Meta's business. As people spend less money, they are also spending less on advertising.

Despite the decline in its stock price, Meta is still a major player in the tech industry. The company has a strong track record of innovation, and it is likely to continue to be a major force in the years to come. However, it will need to address the challenges it is facing in order to maintain its growth.

Here are some of the market forces that might have influenced the value of Meta's stock at its peaks and valleys:

  • Positive market sentiment: When the overall market is doing well, investors are more likely to buy stocks, which can drive up the price of a stock like Meta's.
  • Negative news: Negative news about a company, such as a data breach or a product recall, can cause the stock price to decline.
  • Earnings reports: When a company reports strong earnings, the stock price is likely to go up. Conversely, if a company reports weak earnings, the stock price is likely to go down.
  • Economic factors: Economic factors, such as interest rates and inflation, can also impact the stock market. When the economy is strong, stock prices tend to go up. Conversely, when the economy is weak, stock prices tend to go down.

It is important to note that these are just some of the factors that can influence the price of a stock. The actual price of a stock is determined by supply and demand, and there are many other factors that can affect supply and demand.

Sample Answer

   

Meta Platforms (META) stock price has been on a downward trend over the past year, starting at around $323 per share on January 1, 2023 and falling to a low of $169.09 per share on June 16, 2023. As of September 13, 2023, the stock is trading at $174.99 per share.

There are a number of factors that could have contributed to the decline in META stock price. These include:

  • The ongoing decline in advertising revenue: Meta's advertising revenue is its main source of income, and it has been declining in recent quarters due to a number of factors, including the privacy changes made by Apple and the economic slowdown in some parts of the world.