Mark Zuckerberg’s foray into the metaverse world has cost him in real life. This year has been challenging for every tech giant but what stands out is the wealth erosion of Meta Platform Inc.’s CEO.
Zuckerberg’s fortune has declined by half, already dropping by $71 billion this year. As per tracking by Bloomberg Billionaires Index, this was the biggest fall among the tech titans. Zuckerberg, with a net worth of $55.9 billion, is ranked 20th among the millionaires globally. This is the lowest spot attained since 2014, behind 2 Koch families and 3 Waltons family members.
Zuckerberg, 38, was in an elite group of billionaires with a net worth of $106 billion two years ago. Only Jeff Bezos and Bill Gates had more fortune than him. In September 2021, Zuckerberg’s wealth increased to $142 billion when his company shares rose to $382. The following month Meta was introduced to him, and he changed the name of Facebook Inc. to Meta Platforms Inc. From then onwards, it has been a downhill journey for Zuckerberg as he struggled in the tech universe.
Biggest Decline
The latest earning reports of Meta are disappointing. In February, Facebook disclosed that its monthly users were not growing, leading to the stock collapsing and erasing Zuckerberg’s wealth by $31 billion. This was among the most significant declines in personal wealth ever.
There were other issues as well. Instagram brought Reel as an answer to TikTok on the platform for short videos. The advertising revenue is less here, and the economic slowdown meant lower spending on marketing.
The company’s investment in the metaverse also contributed to the stock getting dragged down. Laura Martin, the senior analyst with Needham & Co., Mark Zuckerberg, estimates that the metaverse project will lose substantial capital in the next three to five years.
Meta Platform performed worse than its FAANG peers in 2022. The stock price is down by 57% in 2022, much more than e the 14% decline in Apple Inc, 29% for Alphabet Inc., and 26% for Amazon. On the other hand, Meta is closer to Netflix Inc.’s losses of 60%.
Bloomberg Intelligence analyst Mandeep Singh says that Facebook would have been closer to Google’s Alphabet position had it not ventured into the virtual reality space. According to the analyst, Meta can overcome the issue if it hives off its other businesses, such as Instagram or WhatsApp.
Zuckerberg’s entire wealth is nearly linked to the Meta stock. As per the latest statement from the company, he holds more than 350 million shares in Meta Platform Inc. The price remained unchanged at $ 146.18 in New York Monday.
In a recent three-hour podcast by Zuckerberg, he referred to himself as a product designer. He recently uploaded a video of himself practicing martial arts in an apparent attempt to rebrand himself.
