Since connecting online is such an integral part of people’s lives, what happened that made the richest social media moguls lose $10 billion in one day?
Tuesday, May 24, stock for the largest social networking platforms took an unprecedented dive.
According to Forbes, Snapchat, Pinterest, Twitter, and Facebook and Instagram parent Meta lost a collective $10 billion in the plunge.
Despite the high volume of people online during the pandemic, there are multiple factors that led to the recent social media stock downtrend.
Additionally, Apple gave consumers the ability to opt-out of targeted ads, which have affected marketing on a large scale, especially on social media.
Snap Inc., whose stock dropped 43% yesterday, made the following statement in a report to the SEC:
“The macroeconomic environment has deteriorated further and faster than anticipated.”
How much did social media moguls lose exactly?
In terms of percentage, Snapchat experienced the most significant loss. This drop in value equated its CEO, Evan Spiegel, to subtracting $1.7 billion from his net worth.
The second-largest percentage decline was Pinterest. More specifically, the picture-sharing website dropped 24% in value. In addition, the net worth of Pinterest cofounders Paul Sciarra and Ben Silbermann dropped 20%.
Tuesday’s stock plummet also affected Meta, the parent company behind Instagram, Facebook, and WhatsApp. The combined Meta networks lost 7.6% in value. As a result, Mark Zuckerberg also lost $5.2 billion.
Lastly, Twitter fell 5%, which is likely of interest to expected buyer Elon Musk.
In summary, the richest social media moguls aren’t immune to economic ebbs and flows. Companies that thrived in the pandemic, like Netflix, are all taking hits now.
However, the difference between who will make it on the other side of it will likely depend on how they adapt.
Featured image sources (from left to right):
- Ben Silbermann (Pinterest): Fortune Brainstorm TECH, CC BY-NC-ND 2.0, via Flickr;
- Mark Zuckerberg (Meta): Anthony Quintano, CC BY 2.0, via Flickr;
- Evan Spiegel (Snapchat): TechCrunch, CC BY 2.0, via Wikimedia Commons.
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