CEO of Meta Platforms, Mark Zuckerberg, witnessed a significant drop in his net worth, losing a staggering $18 billion as Meta’s stock experienced a sharp decline following its earnings call.
Despite Meta surpassing revenue and profit expectations, the company’s stock plummeted after it provided a revenue forecast below market expectations.
Zuckerberg addressed investors, affirming Meta’s commitment to investing billions in areas like artificial intelligence and the metaverse, despite relying heavily on advertising for revenue.
“We’ve historically seen a lot of volatility in our stock during this phase of our product playbook where we’re investing in scaling a new product but aren’t yet monetizing it,” Zuckerberg explained during the call.
Zuckerberg, who owns approximately 345 million Class A and B shares, saw the value of his stake plummet by around $18 billion as the stock dropped by $52.12 on Thursday, closing the trading day at $152 billion.
The tech magnate, who founded the company in 2004 and rebranded it as Meta in 2021, has been vocal about his vision for the metaverse, despite Meta’s Reality Labs division recording cumulative losses of $45 billion since 2020.
Meta announced plans to increase capital expenditures to $35 billion to $40 billion this year, indicating a significant investment in future growth opportunities.
Zuckerberg’s wealth has experienced fluctuations over the years, closely tied to Meta’s stock performance. Despite losing around $100 billion in 2022, his net worth surged in early 2023 following Meta’s announcement of an “efficiency” strategy, which led to a substantial increase in the stock price.
While Thursday marked a substantial loss for Zuckerberg, it wasn’t his worst day financially. In early 2022, he faced a loss of nearly $30 billion in a single day due to Meta’s stock price plummeting by 26% on weak earnings and disappointing guidance.
