Funds Sell Facebook And Paypal On Stock Plunge

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Funds Sell Facebook And Paypal On Stock Plunge

Funds Sell Facebook and PayPal On Stock Plunge

The Blue Whale fund ditched PayPal and Meta, the parent company of Facebook, lately just ahead of their disappointing result reports. PayPal faced a $50 billion wipe-off in market value when it stated that inflation may hit the growth while Meta lost $200 billion facing competition from rival TikTok.

The fund is backed by billionaire Peter Hargreaves, an investment mogul, and looks for small investors. It was launched in 2017 and has witnessed a growth of 90 percent since then. PayPal, Facebook and Amazon were some of the first stocks purchased and featured in the list of top 10 investments.

Meanwhile, the Amazon stock tanked about 25 percent and is now rallying at 15 percent down from the peak November to January period. The downfall was due to the plans of increasing Prime services costs in the United States.

Fund managers who sold the stocks of PayPal and Facebook before the results were announced and they were fortunate.

During the COVID-19 pandemic years in 2020 and 2021, the share prices of several tech giants were up due to lockdown restrictions and people were forced to stay at home. The use of social platforms increased at a rapid pace and households mainly relied on e-commerce platforms for their daily needs. Online food delivery platforms witnessed an increase in demand as dining outside was completely banned.

With the relaxation of restrictions and lifting of lockdowns, people started stepping out of their homes and relied less on social and online platforms. This was reciprocated in the share prices of the companies as the demand for their services decreased.

Meanwhile, several countries are combating inflation in the post-COVID period and Russias invasion of Ukraine that has cut the supply of oil and gas due to sanctions imposed by the Western allies.

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