Zuckerberg’s Wealth Dips $5 Billion, Slips to Sixth Richest
The recent decline in Meta’s stock has significantly impacted Mark Zuckerberg’s wealth, resulting in a drop of nearly $5 billion.
Zuckerberg’s Wealth Decreases to $5 Billion Amid Stock Dip
On Thursday morning, Meta’s shares fell by 2.3%, trading at approximately $620.75. This downturn contributes to a significant decline of 17.5% in the company’s stock over the past week. This includes a single-day drop of more than 11%, following the release of the company’s third-quarter earnings report.
Shifting Rankings Among the Wealthiest
As a result of the stock decline, Zuckerberg’s net worth has decreased by $4.6 billion, reducing his position among the world’s wealthiest individuals. Previously ranked as the third-richest person, he is now positioned sixth.
- Jeff Bezos: $257 billion
- Larry Page: $235 billion
- Sergey Brin: $217.9 billion
- Mark Zuckerberg: Approx. $120 billion (after decline)
Reasons Behind the Stock Decline
The fall in Meta’s share price follows reports indicating that 10% of the company’s total revenue—estimated at $16 billion—was projected to come from advertisements linked to scams and prohibited goods. The revelation stemmed from internal documents, raising concerns about the platform’s approach to advertising.
Meta spokesperson Andy Stone responded to the claims, stating that the reported figures offered a “selective view” that misrepresents the company’s strategies against fraud. He added that internal estimates were lower and included many legitimate advertisements.
Regulatory Concerns and Investigations
Additional documents revealed that Meta is currently under investigation by the Securities and Exchange Commission regarding the distribution of ads for financial scams. In related news, the U.K. regulators highlighted that Meta’s platforms were involved in 54% of payment-related scam losses in 2023, significantly higher than its competitors.
Recent Performance and Future Projections
Despite a previous rebound in stock price after a low in April, Meta’s shares have faced continuous declines. The recent earnings report disclosed that the earnings per share of $1.05 fell drastically—84% below projections. This drop was partly attributed to a one-time tax charge of $15.9 billion due to legislation linked to former President Donald Trump’s One Big Beautiful Bill Act.
Meta indicated that its earnings per share could have reached $7.25 without this tax charge. Furthermore, the company has raised its capital expenditure projections to between $70 billion and $72 billion as it prepares for advancements in technology, particularly regarding superintelligence.
