Business / #ForbesBusiness



July 26, 2018,   4:54 PM

Facebook Stock Plunges, Erasing $18.8 Billion Of Zuckerberg's Wealth

Farah Al-Toukhi

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Facebook's stock value plunged on Wednesday after the social media giant revealed that it expected its revenue growth to slow due to changes that it made to priortize the privacy of users' data.

The social network came into sharp focus earlier this year after reports emerged that a third party was able to access users' information that was provided through a Facebook app. The information was then used to skew the results of the 2016 U.S. elections by manipulating posts or news visible to these users.

Within hours following this policy change, Facebook's stock took a plunge of as much as 24% while the company's overall market capitalization took a hit of more than $110 billion.

Although the company's quarterly revenues rose by 42%, pushing revenues up to $13.2 billion, it actually fell short of Wall Street’s expectations by $200 million.

Zuckerburg's own net worth took a hit, with the announcement wiping away $18.8 billion from his total wealth of $82.4 billion. Before midday Wednesday, Zuckerberg was the world’s fourth-richest person but now has fallen to the eighth richest, according to Forbes Real-Time Rankings.

Despite these large-scale hits to both Facebook and Zuckerburg, the social network's stock is still higher than where it was while the Cambridge Analytica investigation was ongoing. At the time, stocks closed at $152.22 and Zuckerberg was worth $61 billion.

 


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