Meta CEO Mark Zuckerberg saw his personal fortune drop this week as the company’s stock dropped in response to an abysmal quarterly report and has now seen his estimated net worth decline by 12 figures.
The Facebook founder’s fortune plunged by $11 billion on Thursday as his company’s stock value dove, bringing his net worth to $38.1 billion, according to the Bloomberg Billionaires Index. Zuckerberg has lost more than $100 billion over the last 13 months as his company spends incredible sums to pursue his vision of the internet through the metaverse.
Zuckerberg’s plunging fortune arrives after Meta reported a 4.5% drop in revenue in the third quarter on Wednesday. This decline in revenue was followed by Meta’s shares dropping 25% in value on Thursday as investors lost trust in the company.
Meta renamed itself in 2021, arguing that it intended to shift its investments toward virtual reality and augmented reality. The shift has been expensive. Reality Labs, the division focused on Meta’s metaverse efforts, cost the company $3.7 billion last quarter, compared to $2.6 billion that same quarter in 2021. Those losses are expected to increase next year, according to Meta Chief Financial Officer David Wehner.
Meta’s VR efforts have struggled to attract users. The company’s main VR platform, Horizon Worlds, has reported a low user base and the inability to get users to return.
While most technology companies are reporting shrinking numbers, Meta’s shift in focus has made some uncertain about the company’s long-term economic value amid its efforts to relabel itself. “Nothing [Meta] spoke about yesterday actually is the business that today is worth $300 billion market cap,” Needham analyst Laura Martin told Yahoo Finance on Thursday. “It’s almost like [Mark Zuckerberg] has walked away from the core business that’s historically made all the money.”
Meta has faced additional pressure from state and international regulators in recent weeks. The company was fined $25 million on Wednesday by Washington officials for failing to disclose political investments adequately. It was also forced to sell the GIF-hosting platform Giphy by British regulators over antitrust concerns.
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