mark zuckerberg You just had the best day of your life. At least when it comes to her personal assets.
Shares of Meta Platforms soared 17.6% yesterday after the company reported that its main social network, Facebook, added more users than projected in the first quarter. That added $11 billion to the fortune of its 37-year-old chief executive, the biggest one-day gain it has ever seen, according to the Bloomberg Billionaires Index.
Zuckerberg’s massive wealth gain lifted him six places to 12th in the Bloomberg index, outperforming other billionaires including Charles Slim Y Jim, Rob, and Alice Walton., the owners of Walmart.
The recent increase in the number of Facebook users is a sudden turnaround for Meta, which reported in the last three months of 2021 the first decrease in the number of users on the platform. The share price rebound suggests investors are less concerned about their future growth prospects relative to competitors.
Even after Thursday’s rally, Meta shares are still down 39% this year. Zuckerberg’s wealth drop of $49.6 billion in the first four months of 2022 is larger than that of any other of the other 20 richest billionaires.
Facebook’s main social network added more users than expected in the first quarter, which could allay concerns that the company is losing momentum as a new generation of users flocks to younger sites like TikTok.
Shares rose more than 12% in after-hours trading after Facebook parent Meta Platforms reported 1.96 billion daily users for its flagship platform, marking a return to growth following the first-ever decline in the December quarter. Analysts estimated 1.94 billion. Revenue increased 6.6% to $27.9 billion.
Zuckerberg acknowledged that the video-sharing app TikTok, owned by Chinese company ByteDance, represents serious competition for the attention of young users.
Meta stock has suffered the worst prolonged decline in its history. Stocks have lost nearly 50% this year on growing concerns that Meta’s main business, advertising on its social media, is running out of steam and could generate less profit. This slowdown would make it hard for the company to justify the costly vision of the metaverse, pushed by Zuckerberg, a business that won’t turn a profit for years, if ever.
Zuckerberg acknowledged that video-sharing app TikTok, owned by Chinese company ByteDance, represents serious competition for the attention of young users. Meanwhile, changes to data collection rules on Apple’s iPhones have hampered Meta’s ability to serve users targeted ads. The company’s advertisers have also spent less due to problems with supply chains, inflation and the war in Ukraine.
Sales in the current period will be between $28 billion and $30 billion, Meta said in a statement on Wednesday, contrasting with the $30.7 billion that analysts had forecast on average.
Changes to data collection rules on Apple iPhones have hampered Meta’s ability to serve users targeted ads
“This outlook reflects a continuation of the trends that impacted first quarter revenue growth, including weakness in the second half of the first quarter that coincided with the war in Ukraine,” the company said in the statement.
First quarter net income was $7.47 billion, or $2.72 per share. Analysts had estimated earnings per share of $2.56.
With information from Bloomberg
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The best day of his life: how Mark Zuckerberg made $11 billion in just 24 hours