Zuckerberg takes $29bn hit as Facebook shares plunge
Facebook CEO and founder Mark Zuckerberg saw $29 billion wiped from the value of his stake as the company’s shares were hit by a downbeat revenue forecast and the first decline in daily users.
Shares in Meta, owner of Facebook, fell 26%, erasing more than $200 billion from the company’s stock – the biggest ever single-day market value wipeout for a US company. It reduced Zuckerberg’s net worth to $85 billion.
The social network reported a drop of nearly 500,000 in daily logins during the last three months of 2021 – the first decline in its 18-year history.
Mr Zuckerberg, who owns 12.8% of the company, believes the slump was caused by the TikTok boom.
“People have a lot of choices for how they want to spend their time, and apps like TikTok are growing very quickly,” he said during an earnings call.
He reiterated that Meta – which also owns Instagram and WhatsApp – is pushing hard to develop its short-form video Reels in an effort to compete with TikTok.
While Mr Zuckerberg was licking his wounds, fellow billionaire Jeff Bezos at Amazon was set to add $20 billion to his personal valuation after Amazon’s blockbuster earnings.
Amazon shares were up 15% in extended trading on fourth-quarter net sales of $137.4bn. Bezos’ snet worth rose 57% to $177 billion in 2021 from a year earlier.
Tech stocks have endured a volatile period as interest rates begin to rise and money moves out of equities.
The so-called FAANG group of Facebook, Amazon, Apple , Netflix and Google (Alphabet) has seen about $400 billion wiped off their value in the opening weeks of 2022, though Amazon rose last night following good figures.