Zuckerberg drops off billionaires list as Facebook falls
He's now $800 million behind Luis Carlos Sarmiento and his fortune of $15.5 billion.
Mark Zuckerberg, Facebook's (FB) co-founder and chief executive officer, is no longer one of the world's 40 richest people.
The 28-year-old's fortune fell to $14.7 billion Tuesday from $16.2 billion on May 25 as shares of the world's largest social-networking company dropped 9.6% to $28.84. That extended the stock's losses to 24% from the worst-performing large initial public offering of the past decade.
Post continues below.
"It seems to be a clear reflection that there was just too much stock issued, that the valuation was aggressive and that a lot of people who lined up to buy it really had no intention of holding it," Jack Ablin, the chief investment officer of BMO Harris Private Bank in Chicago, said in a telephone interview. The bank oversees about $60 billion of assets.
Facebook shares closed at $38.23 on May 18, the first day they began trading, giving Zuckerberg a net worth of $19.4 billion. The company ended the day with a price-earnings ratio of 83.1, making it more expensive than 99% of Standard & Poor's 500 Index stocks. The company went public as the equity index was heading for its biggest monthly decline since September.
Facebook options trading began Tuesday, with volume for puts exceeding calls by 1.2 to 1, data compiled by Bloomberg show. More than 200,000 puts were traded, giving the holder the right to sell the shares at a specified price. June $30 puts were the most active contracts, with volume at 23,835. They were followed by June $34 calls and June $32 calls, which carry the right to buy the shares.
Zuckerberg is now $800 million behind Luis Carlos Sarmiento, who ranks 40th, with a fortune of $15.5 billion on the Bloomberg Billionaires Index, a daily ranking of the world's wealthiest people.
More from Bloomberg
VIDEO ON MSN MONEY
The problem I have with facebook is it is turning Americans into sit on my butt zombies. Go out and have some fun.
i do not see zuckerburgh eating ramen noodles for dinner any time soon, and he still does not qualifie for food stamps so who cares really.
It also reduces social interaction, which is in a sad state. Remember when people actually had to visit each other? Now I know what you had for lunch from the picture of it that you posted on FB!! I love technology, but this crosses the line. Weird, but I kinda miss seeing someone I haven't seen in awhile and catching up, now I see 500 pics daily of their kid and dog....
Facebook shares will continue to fall until they have zero value. Facebook itself is just a flash-in-the-pan that will soon be replaced by the NEXT stupid 'social networking' fad. Personally, I feel if you are on Facebook you are a pathetic, miserable, no-life lives-in-mommas-basement type of person. The only thing worse is Twitter. I mean...really? People tweet, "just walking to the bathroom now to do my business".
Who cares? What sort of sad, twisted mentally deficient retard 'tweets' and even worse...READS it?
That almost brings a tear to my eye knowing that he has to wipe with $50's instead of $100's now.
Poor "lil" Zuckerz.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] The stock market capped the trading week with losses across the major averages. The S&P 500 fell 0.5% to surrender its weekly gain, while the Dow Jones Industrial Average (-0.7%) and Russell 2000 (-0.9%) underperformed. The two indices posted respective losses of 0.8% and 0.6% for the week.
Equity indices were pressured from the get-go after several heavyweights disappointed the market with their earnings and/or guidance, which led to some broader profit-taking. After ... More
More Market News
|There’s a problem getting this information right now. Please try again later.|
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'