Facebook CEO Mark Zuckerberg’s net worth has fallen more than $16 billion after the company reported weaker-than-expected second-quarter results and issued guidance that its financial future isn’t as rosy as some investors thought it might be. Set against this backdrop, one activist investor wants Zuckerberg out as the firm’s chairman.
Mark Zuckerberg’s fortune tumbled by $16.8 billion on July 26. For many of the world’s richest people, losing $16.8 billion in a day would be a wipeout.
Facebook CEO, Mark Zuckerberg, lost $16.8 billion in two hours in late trading on Wednesday, July 25, as shares of the social media giant slid 20% in post-marketing trading in New York on disappointing result.
According to the Economic Times, Facebook on Wednesday, July 25, reported second-quarter sales and user growth that fell short of analysts’ projections.
Facebook CEO Mark Zuckerberg’s net worth has fallen more than $16 billion after the company was reported weaker-than-expected second-quarter results and issued guidance that its financial future isn’t as rosy as some investors thought it might be.
However, set against this backdrop, one activist investor wants Zuckerberg out as the firm’s chairman. You could imagine what the could do to the company.
Zuckerberg recently sparked outrage when he described Facebook’s handling of content from Holocaust deniers on the social network. He subsequently backtracked on his comments.
Fake news remains an ongoing struggle for the social media giant. Earlier this week, the company was slammed by the parents of a Sandy Hook massacre victim for the hoax claims that emergedon the platform.
Facebook has also been sucked into the probe into alleged Russian meddling in the 2016 presidential election.
The extent of the fallout from the Cambridge Analytica scandal and the new European privacy law, known as General Data Protection Regulation (GDPR), is not yet clear.
In the U.S. and Canada, Facebook’s daily active users remained flat sequentially at 185 million, while the number actually fell in Europe, falling to 279 million, down from 282 million.
Citing the company’s “mishandling” of a number of crises, one activist investor has filed a proposal that Zuckerberg be removed as the company’s chairman, Fortune reports.
Facebook has been firmly in the spotlight in the wake of the Cambridge Analytica data sharing scandal and has also come under intense scrutiny thanks to the proliferation of fake news on the platform, something Zuckerberg apologized for.
“We have a responsibility to protect your data, and if we can’t then we don’t deserve to serve you.”
– Mark Zuckerberg
Prior to Facebook’s second-quarter results, Zuckerberg had a net worth of $77.6 billion, according to Forbes. After the stock selloff, Zuckerberg’s net worth fell to roughly $68.9 billion, making him worth less than Berkshire Hathaway CEO Warren Buffett.
Facebook’s market cap has fallen roughly $120 billion, or the amount General Motors, Ford and Target are worth combined.
On its earnings call, CFO David Wehner said sales growth is likely to decline in the next two quarters as it prioritizes new formats such as Stories (a popular feature on Instagram) and continues to invest in privacy.