Mark Zuckerberg, founder of Facebook, is no longer one of the ten richest persons in the United States due to a series of devastating financial blows to his company. Following the loss of half of his money in the preceding year, he was summarily removed from the list.
According to Forbes, for the first time since 2015, Facebook founder and CEO Mark Zuckerberg is no longer one of America’s 10 wealthiest individuals. Since September 2021, Zuckerberg’s fortune has decreased by $76.8 billion, dropping him from third to eleventh on the Forbes 400 list of the richest persons in the United States.
Zuckerberg’s net worth is still $57.7 billion, based on stock prices from September 2. Zuckerberg is now surpassed by Walmart heir Jim Walton, former New York City mayor Michael Bloomberg, and other tech entrepreneurs including former Microsoft CEO Steve Ballmer and Google founders Sergey Brin and Larry Page.
Facebook’s (now Meta) stock price has plummeted by 57 percent since last year’s Forbes 400, which utilized market prices from September 3, 2021. Facebook’s decline is more than the Nasdaq’s and the S&P 500’s at -13.5 percent and -9.8 percent, respectively. According to reports, investors are concerned that Apple’s iOS 14 privacy change, which makes it more difficult for tech companies to track users between apps and target them with adverts, will have a significant impact on Facebook’s advertising business.
Prior to less than two years ago, Zuckerberg was valued $106 billion and was among an elite group of billionaires; only Jeff Bezos and Bill Gates were wealthier than him. Zuckerberg’s net wealth hit $142 billion in September 2021, when Facebook shares peaked at $382.
A month later, Zuckerberg relaunched Facebook as Meta and declared that the company’s primary emphasis would be the creation of a digital metaverse. Since then, things have gone largely downhill for Zuckerberg and the firm, as he has failed to persuade many that working, socializing, and living in a digital environment via VR headsets is the future of the internet.
In February, Facebook reported no growth in its monthly user base, which precipitated a historic decline in its stock price and reduced Zuckerberg’s wealth by $31 billion. Instagram has also attempted to gamble on Reels, its TikTok competitor, despite the fact that it generates less advertising money and that many users have complained about the app’s shift towards video.
According to Laura Martin, senior internet analyst at Needham & Co., the company’s investment in the metaverse has harmed its stock price. Zuckerberg has acknowledged that the initiative will incur “substantial” losses over the next three to five years.
Facebook revealed its first quarterly revenue loss in July, a 1% decline to $28.8 billion.
Mark Zgutowicz, an analyst at the research and investment banking firm Benchmark, remarked, “Facebook generates the majority of its revenue from advertising, yet it no longer has access to that data. All of these data signals disappeared, which essentially means that advertisers have difficulty determining whether a campaign was successful.”