META stock to $100.46 as of 11:04 AM EDT.
Exchange-traded funds with a focus on communication services are expected to start Thursdays session in the red as Meta Platforms Inc. (NASDAQ:META), a mega-cap company, falls sharply. After declaring a profit shortfall and informing Wall Street of upcoming sales issues, the company has generated more than 20%.
Despite the fact that 332 different ETFs throughout the own world META, the three communication-focused funds that have the biggest exposures to the social media behemoth, have dropped along with METAs decline.
The Communication Services Select Sector SPDR Fund (NYSEARCA:XLC), Vanguard Communication Services ETF (NYSEARCA:VOX), and Fidelity MSCI Communication Services Index ETF are the three ETFs with the greatest portfolio exposures to META (NYSEARCA:FCOM).
Major route in outlook due to Meta stock plunge
The largest holding in the stock of any ETF on the Street is held by XLC, which has a 17.25% weighting in META. XLC is down 3.1% in early market trade. With 11.78% and 10.92%, respectively, VOX and FCOM are the next and third-heaviest holders of META after XLC. VOX is down 1.5% in premarket trading, while FCOM is down 2.1%.
The sector has been under pressure all year, and Thursdays loss is a part of a broader year-to-date decline. METAs year-to-date performance is -58.9%; as a result, XLC is -35.8%; VOX is down 36.9%; and FCOM is down 36.8%. Even though XLC, VOX, and FCOM have the highest weightings towards META, they are not the only funds that experience losses at the beginning of the year. Additionally, trading at a discount is the following ETFs: (IXP), (SOCL), (METV), (FDN), (KNGS), and (PBS).
The stock of Meta Platforms recently fell after the company released a mixed third-quarter results report in which it beat revenue forecasts but missed on profits and issued a revenue warning. Meta Stock Drops As Investors Prepare For Results, Competitor Reports Show Advertising Slowdown
Featured Image – Megapixl (C) Alexraths
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