He is the worst unemployed rich man in 2022. He has lost 70.2 billion dollars so far this year, more than half of his fortune, which drops to 55.3 billion dollars. Although many of his ranking companions have seen how his millions evaporated, his case is the bloodiest.
The staggering decline in his fortune is just the tip of the iceberg of what is happening to Meta, a company that has been floundering since changing its identity and can’t seem to find its way. The rapid decline in the assets of its founder is a reflection of the rapid deterioration of technology.
Less than two years ago, Zuckerberg was the third wealthiest on the planet, behind only Jeff Bezos and Bill Gates, according to the Bloomberg Billionaires Index. In September 2021, he had $142 billion when shares of then-Facebook hit their all-time high of $382. Now, the entrepreneur occupies the twentieth position on that list, his worst mark in eight years.
Shortly after, the collapse of the company begins and Mark’s decline in positions among the wealthiest. Then comes the change of identity from Facebook to Meta and the commitment to the Metaverse. A few months later, last February, the social network presents and, with them, comes the first period in which users do not increase. This causes the collapse of the company and the biggest drop in one day in the assets of its founder, marking a historic drop of 31,000 million in one session.
The absence of new registrations on the platform reveals two things: competition with TikTok and a lower advertising budget by advertisers. In the first case, Zuckerberg’s social network has found a great rival in China thanks to the success of its format, short videos. In the second, the deterioration of economic conditions has weighed down the company’s income.
In addition, the struggle for the Metaverse has required and will continue to require huge investments, something that has weighed on the value of the company this year. In fact, Zuckerberg himself said that the new technology proposal was deficient and that it would mean . Also, in recent times, the old Facebook has come under increased regulatory scrutiny.
Compared to its competitors, it is the worst performer on the stock market. Meta Platforms leaves 57% of value so far this year, only surpassed by Netflix, which loses 60%. However, the negative returns for Apple, Amazon and Alphabet are much less significant, at -14%, -26% and -29%, respectively.
According to Bloomberg, if Meta hadn’t gone all out for virtual reality, the firm would be in a position more like Google’s parent Alphabet. The technology company could have separated the Metaverse project from its other platforms that work better, such as WhatsApp or Instagram.
The hole in Zuckerberg’s fortune shows, as his estate rests on it. He has more than 350 million shares and that explains why he is the richest who has lost the most assets among the 50 wealthiest.
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