Tuesday, December 6, 2022

All in a day: Zuckerberg loses $29 bln, Bezos set to pocket $20 bln

On Thursday, Mark Zuckerberg’s net worth plummeted by $29 billion as Meta Platforms Inc’s (FB.O) stock hit a new low, while fellow billionaire Jeff Bezos was set to increase his personal wealth by $20 billion following Amazon’s record results.

Meta’s stock dropped 26%, wiping out more than nearly $200 billion in the largest single-day market value wipeout in US history. According to Forbes, this lowered Facebook’s founder and CEO Mark Zuckerberg’s net worth to $85 billion.

About 12.8 percent of the tech juggernaut formerly known as Facebook is owned by Zuckerberg.

According to Refinitiv data, Bezos, the founder and chairman of the e-commerce store Amazon, owns around 9.9% of the company. According to Forbes, he is also the world’s third-richest man.

Amazon’s holiday-quarter profit soared thanks to its investments in Rivian, an electric vehicle company, and the company announced it would raise annual Prime subscription prices in the United States, sending its stock up 15% in extended trading and putting it on track for its biggest percentage gain since October 2009 on Friday.

Following the $29 billion wipeouts, Zuckerberg is in the twelfth spot on Forbes’ list of real-time billionaires, below Indian business moguls Mukesh Ambani and Gautam Adani.

To be sure, trading in technology stocks remains volatile as investors struggle to price in the impact of high inflation and an expected rise in interest rates. Meta shares could very well recover sooner rather than later, with the hit to Zuckerberg’s wealth staying on paper.

To be sure, trading in technology companies is still choppy as investors try to factor in the effects of high inflation and an upcoming interest rate hike. With the harm to Zuckerberg’s fortune remaining on paper, Meta shares could recover sooner rather than later.

Last year, before the tech crash of 2021, Zuckerberg sold $4.47 billion worth of Meta shares. The stock sales were part of a pre-determined 10b5-1 trading plan, which executives employ to alleviate insider trading concerns.