Zuckerberg drops off billionaires list as Facebook falls

He's now $800 million behind Luis Carlos Sarmiento and his fortune of $15.5 billion.

By MSNMoney partner May 30, 2012 11:15AM
By David de Jong

 

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.


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"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.


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713Comments
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The problem I have with facebook is it is turning Americans into sit on my butt zombies.  Go out and have some fun.

May 30, 2012 11:51AM
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I'm feeling sorry for his loss. Just kidding!
May 30, 2012 6:01PM
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I would never own one share of that company. I hate FACEBOOK.
May 30, 2012 3:18PM
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It never made any sense to go public. There was zero incentive for investors,  Zuckerberg is literally selling your personal identity. I can look at travel sites for "vacations in Italy". When I get back on Facebook, to the right what do I see?  "Tour Italy" click here. Facebook is following you even when you are not there. Posting personal information- very silly. Limit friends to "real friends and family" and keep your privacy options tight, or don't do it. 
May 30, 2012 12:29PM
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Screw Zuckerberg!  I hope the common pond scum loses his last penny.  I have no use for an arrogant wealthy person who can not, or refuses, to leave a waitress a 10% to 20% tip depending upon the level of service.  He may keenly aware of social media issues, however, his social decency is lacking. 
May 30, 2012 4:57PM
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FB doesn't produce a tangible product, it justs let other people talk about themselves. How can anybody think that's worth billions? P.T. Barnum said it there's a sucker born every minute....HAHAHA
May 30, 2012 1:11PM
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Well....it's the Pet rock all over again, (For those of you old enough to remember) a "product" that produces nothing but the embarrassment of having bought it....once, and even with a 2 billion dollar loss the 28 year old is laughing all the way to the bank. Zuckerberg made suckerbergs out of the world with a company that has created the largest "anti-social" network in history.....oh you have 7000 "friends" on Facebook.....how many have you actually met........thought so............
May 30, 2012 12:31PM
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Remember the "dot.com" blow out in the 90's?  It's gonna happen again.....these sites don't produce anything tangible!  History will repeat itself. 
May 30, 2012 2:37PM
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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.

 

May 31, 2012 11:32AM
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Facebook is really changing this world for the worse.  It puts your whole life out there for everyone to see. Kids have no idea the problems in the future that may rise from not realizing how public all this information really is.  It's not a fun little website anymore, it's peoples lives now.  Your next employer, for any decent job, will be looking you up.... 

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.... 
May 30, 2012 3:41PM
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He didn't lose money. He never had it. I could estimate the value of the stuff in my attic at 300 billion but the real test comes when I try to sell it. Would you say I lost billions when I have a yard sale and only get 1200 bucks for my junk, I think not
May 30, 2012 2:48PM
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Oh no.  He only has 14.7 Billion now.  How's he ever going to make it?  Whatever....
May 30, 2012 2:17PM
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(In the manner that Jerry Seinfeld used to say it on his show...) That's a shame.  Wanna get some pizza?
May 30, 2012 3:18PM
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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?

May 30, 2012 2:46PM
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People are starting to realize that facebook is nothing more than a dopey social site.
May 30, 2012 7:46PM
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I would like to see people like Zuckerberg use their intelligence, money and influence to better humanity.  As long as we are treating flesh eating bacteria with amputation and cancer with radiation; I can't bring myself to care much about Facebook, its IPO, Zuckerberg, or his standing on the billionaire's list.  How about focusing on improving our medical treatment to the level of our cell phone technology.  We have several ways to identify disease and few ways to treat or cure any of them.  Let's find a way to keep our food safe so young kids and the elderly stop dying from various sicknesses and call the current version of the iPhone good, for now.  It would be wonderful if our debates and resolve around stopping bullying was, at least, as successful as determining that Pluto is no longer a planet.
May 30, 2012 12:54PM
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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.

May 30, 2012 4:30PM
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What fortune??? Based on what?? It never EXISTED!!! It was pretend 'wealth' conjured from thin air for a non-existent product. Just like ant of the monetized debt worthless crap Wall Street is based on these days.
May 30, 2012 12:33PM
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Snookie,the Kardassssians,Lewdy CaCa,Justa Beaver and Pistol Palin all stink and so do you if you like them.
May 30, 2012 4:38PM
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I still don't see how this company is going to generate significant revenue.
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