San Francisco, CA
Billionaire Facebook co-founder Mark Zuckerberg is lighter in the pocket as his company's shares continue to plunge. He lost an estimated $3 billion recently in two days.
After reporting low sales in the company's second quarter, Facebook's shares dropped by 11.7 percent on the stock market.
The company's stock is down by 38 percent since it offered its initial public offering.
Susquehanna Financial Group analyst Herman Leung was quoted by Bloomberg News: "They are probably a little bummed out right now. Facebook has to balance more of a fine line between delivering numbers for Wall Street and deciding how much monetization it's going to push toward impacting its user base."
Zuckerberg was not the only billionaire to see his fortune drop. Co-founder and former Zuckerberg friend Eduardo Saverin went from having $1.3 billion to $760 million since its public offering. Former Zuckerberg roommate Dustin Moskovitz went from owning $3.2 billion in Class B stock to now having $1.9 billion.
Former Google executive and now Facebook's CEO owned over $500 million in shares. Since the IPO her shares value has lost $228 million.
Zuckerberg has already netted $1.1 billion. CNET adds that, "Zuckerberg has sold some of his stock, which the company said was necessary for him to pay his taxes. Regardless of the reason, just after the IPO, he took some profits at a price that others would envy. He sold 30.2 million shares at $37.58 a share. As for the future, who knows. This is the stock market, after all, and past performance is no guide for future performance. Yet there are some key dates that Wall Street is worried about. Those are when the so-called lockup periods expire and more insiders can sell their shares, which doesn't seem so far-fetched for those who got them at, say, $1 a share."
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