Facebook CEO Mark Zuckerberg lost $17.6bn in net worth as the company’s stock plunged over 20 per cent in after-hours trading on Wednesday following a grim earnings report.
Zuckerberg, who had been worth as much as $86.5bn when Facebook stock traded at an all-time high earlier in the day, now has a net worth of about $68.9bn, according to regulatory filings with the U.S. Securities and Exchange Commission.
His new net worth places sees him drop from the world’s third-richest person to the sixth, below billionaires including Warren Buffett, French business magnate Bernard Arnault, and Zara founder Amancio Ortega.
The 34-year-old Facebook’s founder is the media company’s largest shareholder, with 12.8 percent of its shares outstanding.
Zuckerberg’s paper losses come after Facebook revealed mixed earnings and slowing growth during the second quarter of 2018.
During the quarter, the company added 22 million daily active users, lower than the 41 million it added in the same quarter a year earlier.
At least 16 brokerages cut their price targets on Facebook after executives said the cost of improving privacy safeguards, as well as slowing usage in the biggest advertising markets, would hit the company’s profit margins for more than two years.
Facebook shares were down 20.4 percent at $173.20 in pre-market trading, a decline that would wipe about $128bn off the company’s value — or nearly four times the entire market capitalisation of Twitter Inc.
The fall in stock value comes in the aftermath of privacy scandals involving Cambridge Analytica and other app developers.