Facebook CEO, Net Worth Down By $7.2 billion Since IPO

Facebook CEO Mark Zuckerberg’s net worth has fallen by more than $7 billion since he took his company public back in May of this year.

Based on the $38 per share price of Facebook’s IPO, Zuckerberg was worth approximately $19.1 billion. Since that time, he’s done a little rearranging of finances, such as selling 30 million of his Facebook shares for tax purposes. He still has more than 500 million shares of Facebook to his name, though.

As of today’s stock price of $23.74, Zuckerberg’s stake in the company is valued at $11.98 billion, which comprises the bulk of his total net worth. Even after losing $7.2 billion over the course of the last few month, Zuckerberg is still one of the richest people in the world according to Forbes.

Facebook stock has never done as well as analysts thought it would. As rumors of the company’s impending IPO sprang up last year, tech pundits and financial analysts were predicting that it would eventually rise to near-Google numbers, whose stock price current sits at $633.

On the day of its IPO, however, Facebook shares barely closed above the initial price. After releasing its first earning report yesterday, the company’s stock tanked to its al-time low today. Facebook’s earning were modest at best, with the company generating $1.18 billion in revenues, which is a 32% increase from this time last year. The problem comes in the form of a $157 million net loss for the quarter, which is mostly due to IPO-related costs. Analysts were expecting $1.15 billion in earnings.

Still, it’s hard to feel sorry for someone whose net worth is nearly $12 billion, even if it has fallen almost 40% over the last three months. Without IPO costs next quarter, Facebook is sure to rebound from these disappointing numbers, as will, I’m sure, Zuckerberg’s bank book.[]

Digital Times

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