As Facebook stock plunged over 20 per cent in after-hours trading on Wednesday following a disappointing earnings report, CEO Mark Zuckerberg lost $17.6bn in net worth.

The 34-year-old Facebook billionaire, who had been worth as much as $86.5bn when Facebook stock traded at an all-time high earlier in the day, now has a net worth of about $68.9bn, based on regulatory filings with the U.S. Securities and Exchange Commission.

That figure includes some $2.7bn in cash and real estate, according to Bloomberg’s Billionaire index.



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That places Zuckerberg, who had been the world’s third-richest person, at Number Six, below billionaires including Berkshire Hathaway’s Warren Buffett, French business magnate Bernard Arnault, and Zara founder Amancio Ortega.

Zuckerberg’s net worth had surpassed Buffett’s in June as shares of Facebook continued to climb and Buffett continued to give much of his wealth away in charitable donations. Today, Buffett is worth roughly about $82.3bn.

Facebook’s founder is the media company’s largest shareholder, with 12.8 percent of its shares outstanding.

Zuckerberg’s paper losses come after Facebook revealed mixed earnings and slowing growth during the second quarter of 2018.

During the quarter, the company added 22 million daily active users, lower than the 41 million it added in the same quarter a year earlier.

Chief financial officer, David Wehner, told analysts in a follow-up call to brace for a possibly deeper slowdown as the company seeks to expand new offerings such as Stories and increase privacy and security for users.

At least 16 brokerages cut their price targets on Facebook after executives said the cost of improving privacy safeguards, as well as slowing usage in the biggest advertising markets, would hit the company’s profit margins for more than two years.



Facebook shares were down 20.4 percent at $173.20 in pre-market trading, a decline that would wipe about $128bn off the company’s value — or nearly four times the entire market capitalisation of Twitter Inc.

Facebook’s second-quarter results were the first sign that a new European privacy law and a string of privacy scandals involving Cambridge Analytica and other app developers are hitting the company’s business.

Facebook also warned that the toll would not be offset by revenue growth from emerging markets and the company’s Instagram app, which has been less affected by privacy concerns.

Describing the announcements as “bombshells,” Baird analysts said the issues were, to a large degree, “self-inflicted” as Facebook sacrifices its core app monetisation to drive usage.

Of 47 analysts covering Facebook, 43 rate the stock as “buy,” two rate it “hold,” and two rate it “sell.” Their median target price is $219.30.

Some analysts said Facebook’s issues would not be easily resolved.

“Unlike Netflix, whose quarterly shortfall we saw as temporary, here we see an evolution of the story, albeit a portion of which we expected,” said Daniel Salmon, analyst at BMO Capital Markets.

Others, however, saw a silver lining in Facebook’s emphasis on more engaging content and its promotion of stories on its News Feed, which would support revenue over the longer term.

“Bears win this quarter … but not the war,” said Brent Thill, an analyst with Jefferies.

http://punchng.com/facebooks-mark-zuckerberg-loses-17-6bn-plunges-to-worlds-sixth-richest/

he will surely bounce back

still not bad

OK nah

chai.... This guy na my brother mate oooo





see my signature

This guy wld still eventually be the richest in the world

CTechHub:
still not bad

atall

teewhydope:
he will surely bounce back

definitely

See as OP write am like say nah bad thing.

Capitalism is evil!!! How can one man have so much and some cannot even afford bread....... VIVA CASTRO!!

Na wao... Baba God, I no come this world to come look uchu face, I no come to come tick present then go, I come to live, to jolly and to serve you. All these Billionaires, shebi dem get two heads? No!

As you take bless dem, bless me too. Bless me with brain wey me for take invent something too. I don tire to d read about billionaires everyday, wey be say Garri to see sip, man pikin no see. Baba God, the summary of this my plenty talk na say, make U bless me, so that one day, dem go halla my name for Forbes too. Amen.

tunjijones:
This guy wld still eventually be the richest in the world

It will never happen....




see my signature

If i worth 0.01% of his net worth, no complain. He's still ok at that.

Thank God am now richer than this dude ...please show your guy some love. I just need 50 likes, lobatan !!!

I never really knew his net worth was up to this, and I rushed into this thread as if he's gone bankrupt.

Abegi make we hear word

Not surprised.
Face book losing relevance.
No use whatsoever!

Only business accounts should be left open. All those “tatafo” individual accounts should be shut down.

He will lose more in the future. Facebook is STAGNANT.

17.6bn and he's still breathing? Ordinary 600 Naira i lost when Nurse Onyinye sold a drug of 1400 for 2000 to me, and my heart is doing me somehow.


And i am even older than this Mark guy.

How many heads do these people have sef?

maxtop:
Thank God am now richer than this dude ...please show your guy some love. I just need 50 likes, lobatan !!!

it means ye are the ruchest in Africa bro... cos Even dangote no reach zuck...
congrats

KanwuliaExtra:
Not surprised.
Face book losing relevance.
No use whatsoever!

Interesting

Please why do you say so?

Person lose $17.6bn and I never get $1M. God make a way for me.

No worry. He shall bounce back

omo

Just imagine those swing sell trades. $$$

Why did Zuckerberg visit Nigeria? Since his visit to this dark country of evil, village people have been troubling him up and down

I feel so bad for that humble young man

omo

Such is life, nothing is permanent. The mighty too can fall.

So I am here to comment on a man richer than 20 states put together in Nigeria, who am I even deceiving. My bday go soon reach nd I am yet to mk d one million naira I promised myself. God help me mk one million naira as my bday gift na. Pls na beg I dey beg.

alignacademy:


Interesting

Please why do you say so?

I edited.
See my original post.