What’s cooking up with Facebook share price? Guess what! Mark Zuckerberg gets poorer by $16 billion, now at sixth rank in wealthiest list
Mark Zuckerberg who is known for leading social media giant Facebook, is getting poorer these days, as he has lost three ranks in the wealthiest people on earth. The amount of money Zuckerberg has lost is massive, which can be blame to his Facebook, whose share price has tumbled massively. Facebook share price yesterday, ended at $144.22 on Nasdaq, which was the lowest since March 2018. Investors interest have also been bleak when it comes to trading in Facebook. As for Zuckerberg, the problem deepens each coming day, where customers have now lost morale in his company.
The beginning of this year has definitely not been great for Zuckerberg, who faced series of blame in regards to data breach in Facebook which has over 2.27 billion people active on monthly basis. Looks like, 2018 will not end in a good note for Zuckerberg, and looking at issues being thrown on Zuckerberg, he might lose hefty by end of this year.
It is being known that, Facebook has been facing scrutiny with Europe and United States of America. What is being believed is that, investors of Facebook fears regulatory imposition as foggy faith in the company’s share price. These two countries have made life difficult for Facebook.
According to Reuters, Democratic U.S. Representative David Cicilline, expected to become the next chairman of House Judiciary Committee's antitrust panel, said on Wednesday that Facebook Inc cannot be trusted to regulate itself and Congress should take action.
Cicilline reportedly added, “This staggering report makes clear that @Facebook executives will always put their massive profits ahead of the interests of their customers."
Then there has been already a new data privacy laws enforced by Europe, which has raised costs for tech companies.
In April month, Zuckerberg was reportedly questioned for nearly 10 hours, by legislators in the House and Senate to address a scandal that saw data on its users leaked to political operatives.
These two houses raised concerns on whether Facebook could regulate itself.
Apart from this, a Wall Street Journal reported that, amid a plunge in the stock price, ongoing leadership turmoil and critical media coverage, just over half of employees said they were optimistic about Facebook’s future, down 32 percentage points from the year earlier, according to the survey, which was taken by nearly 29,000 employees. Fifty-three percent said Facebook was making the world better, down 19 percentage points from a year ago.
Hence, the WSJ added, declining stock price has also hurt morale among employees for whom stock options are a large part of their compensation, current and former employees say.
A Facebook spokesperson told WSJ that, “It has been a difficult period, but every day we see people pulling together to learn the lessons of the past year and build a stronger company.”
Facebook in one year’s time, has tumbled by 20.45%. It was at $177.95 on November 15, 2017, however, has dropped to $141.55 on November 22, 2018. Facebook touched an high of $217.50 on July 25, 2018 and if we compare this with $141.55-mark, the company has plunged by a massive 34.92% in less than four months.
This has taken a toll on Zuckerberg’s wealth, as now he stands at sixth position in the Bloomberg Billionaire Index with wealth of about $57.1 billion. This year till date, Zuckerberg has lost about $15.7 billion wealth. The Bloomberg Billionaires Index is a daily ranking of the world’s richest people. Details about the calculations are provided in the net worth analysis on each billionaire’s profile page. The figures are updated at the close of every trading day in New York.
It was only in July month, when Zuckerberg total net worth stood at $81.6 billion at third spot. The glory of Zuckerberg’s pocket had even outrunned investment king and business philanthropist Warren Buffett. Buffett’s net worth stood at $81.2 billion.
However, Buffett who is also referred as ‘Oracle of Omaha’ has taken Zuckerberg’s third spot in latest list. Buffett now has $88.7 billion in his pocket standing at third rank, followed by Bernard Arnault Chairman and CEO of LVMH (Louis Vuitton) with $68.7 billion wealth at fourth spot, and Amancio Ortega the founder of Inditex Group with wealth of $65.4 billion bagging fifth rank.
Interestingly, the Bloomberg list also revealed that, Zuckerberg was the one who lost hefty money compared to other renowned names mentioned in the index.
Facebook had revenue of $41 billion in 2017 and has more than 2 billion monthly users. Its initial public offering in 2012 was the biggest-ever technology IPO at the time.
Currently, Facebook has a market cap of $414.46 billion as on November 14, as per Nasdaq.
Looking at the list of oppositions and regulations been put up by both America and Europe, Facebook might witnessed further pressure in its stock price. This will mean, there is no good news for Zuckerberg.
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