Meta Stock Plunge Shows the Folly of Legislating By Market Cap

Paper valuations based on Wall Street speculation make no sense as criteria for legislation.

NRPLUS MEMBER ARTICLE O n February 3, Meta’s shares dropped 26 percent and the company lost $230 billion in value, the largest ever one-day loss by an American company.

In June 2021, Meta (then known as Facebook) hit $1 trillion in market capitalization for the first time. Now, the company’s market cap stands around $565 billion, approximately 60 percent of what it did just seven months ago.

This example ought to be a teachable moment for those antitrust crusaders in Congress who want to break up companies larger than a government-determined size. Instead of legislating based on market cap, lawmakers should focus on ensuring antitrust law …

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