Finance

Zuckerberg’s $71B Wealth Erased; focus on goal

Zuckerberg’s B Wealth Erased;  focus on goal

(Bloomberg) — Mark Zuckerberg’s turn into the metaverse has cost him dearly in the real world.

Even in a difficult year for almost all of America’s tech titans, the high amount of funding from the CEO of Meta Platforms Inc that was erased stands out. His fortune has shrunk by just over half, with a loss of $71 billion so far this year, the most among the ultra-rich tracked by the Bloomberg Billionaires Index. At US$55.9 billion, his net worth ranks 20th among global billionaires, his lowest level since 2014, behind three Waltons and two members of the Koch family.

It was less than two years ago that Zuckerberg, 38, was worth $106 billion and among an elite group of global billionaires, with only Jeff Bezos and Bill Gates at the helm of larger fortunes. His wealth rose to a high of US$142 billion in September 2021, when the company’s shares reached US$382.

The following month, Zuckerberg introduced Meta and changed the company’s name. And from there he has gone largely downhill as he struggles to find his place in the technological universe.

His recent earnings reports have been dismal. It began in February, when the company disclosed no growth in the number of monthly Facebook users, triggering a historic collapse in its share price and slashing Zuckerberg’s fortune by $31 billion, among the biggest drops in a year. day in riches of history. Other issues include Instagram’s bet on Reels, its response to TikTok’s short-form video platform, even though it accounts for less in ad revenue, while the industry as a whole has been hit by lower marketing spend. due to concerns about an economic slowdown.

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Shares are also being dragged down by the company’s investments in the metaverse, said Laura Martin, senior internet analyst at Needham & Co. Zuckerberg said he expects the project to lose “significant” amounts of money over the next three to five years. .

In the meantime, Meta “has to get these TikTok users back,” Martin said. It is also hampered by “excessive regulatory scrutiny and intervention,” he said.

The company is doing worse in 2022 than most of its FAANG peers. It’s down 57% this year, far more than drops of 14% by Apple Inc., 26% by Amazon.com Inc. and 29% by Google parent Alphabet Inc. Meta is even narrowing the gap. in 2022 losses with Netflix Inc., which is down 60%.

Nearly all of Zuckerberg’s wealth is tied up in Meta stock. He owns more than 350 million shares, according to the company’s latest statement.

Zuckerberg has attempted a kind of rebranding. He recently uploaded a video of himself practicing mixed martial arts and repeatedly referred to himself as a “product designer” in a three-hour conversation on the Joe Rogan podcast.

original note:

Zuckerberg’s $71 Billion Wealth Wipeout Puts Focus on Meta Woes

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