Mark Zuckerberg’s net worth has Dropped

Meta CEO Mark Zuckerberg’s personal worth has been reduced by the stock market rout of 2022 more than anyone else.

Bloomberg calculates that Zuckerberg, the founder of the company formerly known as Facebook, has lost more than $71 billion in net worth since the beginning of the year. According to the Forbes billionaires list, Zuckerberg, 38, has dropped from No. 3 to No. 22.

The decline can be attributed to the dizzying fall of Meta’s stock, which holds the bulk of Zuckerberg’s fortune. Zuckerberg’s fortune has been drastically wiped out by the financial market’s decline, but no one, including crypto CEO Changpeng Zhao, has seen a loss of fortune as great as Zuckerberg’s.

About 60% of Facebook’s stock value has been lost since it became Meta nearly a year ago, which has also affected Zuckerberg’s net worth.

Metaverse’s pivot highlights the company’s trouble with its traditional business model, which relies on selling massive amounts of advertising based on very specific user data. In the last year, Apple iOS 14 changes that made tracking harder took a big bite out of Meta’s earnings.

According to Angelo Zino, an analyst at CFRA who covers social media companies, Meta and Snap rely most on iOS users. As an example, he cited Alphabet, whose earnings have been more resilient because they haven’t been as affected by iOS changes.

There has been much more controversy over the privacy issue than most people expected, and it will probably continue for a long time,” he said.

A slowdown in revenue was accompanied by Meta’s first-ever drop in user numbers in February. In addition, the company has increased spending by roughly $10 billion a year to create the virtual-reality Metaverse, a project Zuckerberg has said could take many years to complete. For investors, that’s cause for concern since there is no guarantee that the spending will be repaid in the short term.

“Investors have reason to be excited over time, but what we know about investors is that they can be impatient,” Zino told CBS MoneyWatch.

Zuckerberg remains optimistic

 

According to him, “you know that the broader internet could potentially reach its vision, but you have no idea when that will be and what Meta’s role will be … all you know is that it will be very expensive.”

Zuckerberg’s techno-optimism doesn’t seem to have been affected by the plunge in his wealth. The Meta chief reiterated his belief last month that the metaverse will be more useful and allow people to have a healthier relationship with technology in an interview with podcast host Joe Rogan.

According to Fortune, Zuckerberg said he doesn’t necessarily want people to spend more time on computers. As for the time people spend with screens, I just want it to be more enjoyable.”

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