Falling Meta stock price lured $231 million from retail investors

Retail investors paid $231 million to buy heavily discounted shares of Meta Platforms during Thursday’s sale, the highest amount in nearly four years, according to Vanda Research.

Facebook’s parent company lost $251 billion in market capitalization as the stock fell 26% in Meta’s fourth-quarter earnings report, which showed a drop in daily users for the first time ever. The company also released a lukewarm first quarter guidance.

But amateur traders “aggressively bought the Meta drop” with $231 million, a number not seen since July 2018, said Vanda Research, whose VandaTrack database tracks inbound retail flows. and exiting stocks and ETFs in the United States.

This purchase amount was more than 25 times what we usually see. Average daily net purchases of Meta shares since February 2020, when the COVID-19 health crisis began to spread globally, have been just over $9 million, the based company said. in London.

In fact, retail investors poured more money into Meta stocks on Thursday than into the popular Invesco QQQ Trust which tracks the Nasdaq 100 index of large-cap growth stocks and leveraged tech ETF ProShares UltraPro QQQ. .

But the $231 million figure is lower than the $269.4 million retail investors poured into Meta stock on July 26, 2018, when shares fell 19% on concerns over expansion. revenues.