Meta and PayPal forecast little income and user base increase for 2022. Crisis of confidence, lack of liquidity, and geopolitical tensions harm the stock markets.
The behavior of financial markets is currently facing ups and downs; when the value of a product reaches high peaks due to speculation and combining particular features, at some point, its price could accelerate steadily fast.
This acceleration might be happening to the companies and assets that benefited the most during the pandemic. While shares of companies like Meta (former Facebook), PayPal, Spotify, and Netflix skyrocketed when the COVID-19 lockdown was at its best, today they are revealing some of the most shocking decays since they got created.
Mark Zuckerberg’s company lost 200 billion dollars in a matter of a day. It is the worst decline registered by a commercial entity in the history of the United States of America. The situation took effect a few weeks ago, but the old Facebook has not yet been able to recover, and its shares are at a price never seen since the previous year.
Bitcoin Might be Facing Depreciation Just in the Same Way as Meta, and PayPal Shares Do
Meta is not the only entity that received damage, but also PayPal, which currently carries out transactions at a price it had achieved before the pandemic. Although Spotify and Netflix might decline, they also register losses that cover 45% of their value compared to the most considerable price they approached last year.
While various analysts believe that the violent tensions between Russia and Ukraine keep the regions on guard, others highlight that the changes that happened in daily life, with the introduction of the COVID vaccines, do not favor the almost imminent evolution of these entities.
Some analysts may argue that a currency like bitcoin could also be a prisoner in this massive cage of assets that temporarily got benefited from the pandemic outbreak. Undoubtedly, digital currency also experienced a sudden price increase last year because it works as a store of value against the empowered dominion of the dollar.
Liquidity Crisis and Political Tensions in Europe
Two external events are impacting every market to a greater or lesser extent. These events are the political tensions between Russia and Ukraine that keep investors in expectation and cause bombastic volatility in digital asset prices. On the other hand, a lack of liquidity storms stock markets because of the eradication of the aid created by governments to cover the debacle that the pandemic generated to the economic environment.
Bitcoin has been recently floating with amounts between $37,000 per unit and $40,000. Like other stocks and products on the stock market, the conflict between the two European countries worsens and puts the world market on the edge of a sword. And therefore, no one would desire to deal with such a risky environment.
By: Jenson Nuñez
