Meta Platforms' weak forecast sparks meltdown of social media stocks

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., January 26, 2022. REUTERS/Brendan McDermid

(Reuters) - Facebook owner Meta Platforms Inc's quarterly earnings miss and poor forecast on Wednesday ignited a meltdown in social media stocks and threatened to smother a recent recovery from a Wall Street tech selloff.

Meta tumbled 21% following its quarterly report after the bell, erasing about $200 billion worth of its stock market value. A decline of this size in Thursday's session would mark the company's worst one-day loss since its Wall Street debut in 2012.