Mark Zuckerberg’s net worth dropped by $71 billion this year

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This year Mark Zuckerberg's net worth dropped by $71 billion (6)

The stock market rout of 2022 has corrupted the personal worth of many tech billionaires, but none more so than Meta CEO Mark Zuckerberg.

Mark Zuckerberg's net worth dropped by $71 billion this year

Zuckerberg, the founder of the company formerly known as Facebook, saw his net worth drop to about $71 billion this year, according to Bloomberg calculations.

The 38-year-old Zuckerberg, who was ranked 3rd on the Forbes list of billionaires last year, has fallen to 22nd today.

Mark Zuckerberg's net worth dropped by $71 billion this year

Meta Stock, which holds a large portion of Zuckerberg’s fortune, has caused a dizzying fall. While this year’s collapse in financial markets has cut the fortunes of several tech billionaires by nearly a quarter, no one saw a Zuckerberg-level wipeout, not even crypto CEO Changpeng Zhao.

Mark Zuckerberg's net worth dropped by $71 billion this year

Since Facebook went meta nearly a year ago, its stock has lost 60% of its value, along with Zuckerberg’s.

Mark Zuckerberg’s net worth dropped by $71 billion this year

The company’s pivot to Metaverse underscores the difficulty with its traditional business model, which relies on selling massive amounts of advertising against specific user data.

Apple’s iOS 14 changes last year made tracking more difficult for advertisers, leaving Meta’s earning power largely untapped.

Mark Zuckerberg's net worth dropped by $71 billion this year

Among social media companies, Meta and Snap rely heavily on users on iOS, said Angelo Gino, a CFRA analyst who covers social media companies.

He pointed to Google parent Alphabet, whose earnings are better “because they’re not exposed to iOS changes,” he said.

“The privacy issue is a bigger thorn in the side than most people learn, and it’s probably going to be an issue for more prolonged than anyone thinks,” he added.

In addition to slowing revenue, Meta reported its first-ever decline in user numbers in February.

Mark Zuckerberg's net worth dropped by $71 billion this year

At the same time, the company has increased its spending by about $10 billion a year to build the virtual-reality metaverse, a project Zuckerberg has indicated could take several years.

This is a concern for investors who see short-term increases in spending with no guarantee of payouts.

Mark Zuckerberg’s net worth dropped by $71 billion this year

“If you’re an investor over time there’s reason to be excited, but we know investors can be unforgiving,” Zino told CBS MoneyWatch.

Mark Zuckerberg's net worth dropped by $71 billion this year

“You know that the next image for the more comprehensive internet can get there, you just don’t know how long it will take and exactly what the meta role will be … What you know right now, essentially, is that it’s going to cost a lot of money,” he said.

Still, the fall in his wealth doesn’t seem to have dimmed Zuckerberg’s tech optimism. Speaking to podcast host Joe Rogan last month, the Meta chief doubled down on his belief that Metaverse will be more “useful” and allow people to have a “healthier” connection with technology.

Mark Zuckerberg's net worth dropped by $71 billion this year

“I don’t want people to spend too much time with computers,” Zuckerberg said, according to Fortune. “I want the time people spend with nets to be more profitable.”

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