Meta is in the midst of a historic stock collapse.
By Scott Carpenter, Bloomberg | Updated: 4 February 2022 10:19 IST
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Photo Credit: MetaMark Zuckerberg may be out of the list of the Top 10 wealthiest people in the world
HIGHLIGHTS
- Meta witnessed a steep decline in market value on Wednesday
- Meta CEO Mark Zuckerberg lost $31 billion (roughly Rs. 2,31,600 crore)
- Meta COO Sheryl Sandberg lost $100 million (roughly Rs. 750 crore)
Mark Zuckerberg’s wealth dropped as much as $31 billion (roughly Rs. 2,31,600 crore), among the biggest one-day drops in wealth ever, after Meta Platforms Inc.’s fourth-quarter results fell short of analysts’ expectations. Meta is in the midst of a historic stock collapse after its earnings on Wednesday showed no growth in monthly Facebook users last quarter relative to the prior period, raising concerns about the company’s future growth. Shares tumbled 24 percent at 10:25am in New York Thursday.
Meta’s steep decline leaves Zuckerberg, the company’s chief executive officer, with a net worth of about $92 billion (roughly Rs. 6,87,900 crore), down from $120.6 billion (roughly Rs. 9,01,600 crore) as of market close on Wednesday, according to the Bloomberg Billionaires Index. It’s enough to push the 37-year-old outside the list of the Top 10 wealthiest people in the world for the first time since July 2015.
A one-day wealth loss of $31 (roughly Rs. 2,31,600 crore) billion would rank as the second-biggest ever caused by a share-price decline, only rivaled by the volatile swings in Elon Musk’s fortune. The world’s richest person lost $35 billion (roughly Rs. 2,61,700 crore) in a day in November as Tesla shares fell following a Twitter poll in which Musk asked voters if he should sell 10 percent of his stake in the company. His net worth also plunged $25.8 billion (roughly Rs. 1,92,900 crore) last week.
Meta’s co-founders are also facing unprecedented declines in their personal fortunes. Dustin Moskovitz, the world’s 79th-richest person with a net worth of $21.2 billion (roughly Rs. 1,58,500 crore) as of Wednesday, has lost about $3 billion, while Eduardo Saverin, worth $17.5 billion (roughly Rs. 1,30,900 crore), is down more than $4 billion (roughly Rs. 29,900 crore).
The $2.5 billion (roughly Rs. 18,700 crore) personal fortune of Sheryl Sandberg, Meta’s chief operating officer, fell by more than $100 million (roughly Rs. 750 crore), according to data compiled by Bloomberg. Compared with Zuckerberg, however, Sandberg’s wealth is less concentrated in the company’s shares, softening the blow.
For Meta, the disappointing earnings add to its challenges. It’s in the middle of a number of regulatory fights and also looking to justify its strategic shift to bet on an immersive internet known as the metaverse. Meanwhile, other platforms like TikTok and YouTube are gaining ground with younger users