Mark Zuckerberg Loses $1.5 Billion On A Bad Day For Social Media Companies
Posted by Rant4u
Facebook CEO Mark Zuckerberg lost $1.5 billion today. (Photo credit: Wikipedia)
After losing about $2 billion more than a week ago on Facebook‘s second trading day as a public company, CEO Mark Zuckerberg came out of the three-day weekend to witness another precipitous drop in his fortune. According to Forbes’ Real-Time Billionaires list, the value of his stake in Facebook plunged $1.5 billion to $14 billion after the company’s share price fell below $30 on Tuesday.
Facebook’s stock closed down 9.6% at $28.84. Since Facebook’s stock debuted on the Nasdaq on May 18 with underwriters selling shares at $38, it has dropped 24.1%.
Selling pressure seemed to be boosted by the start of options trading on Facebook, which opened today with record volume and a fair amount of negative sentiment. With options, traders can bet on a stock by paying less to buy an option than they would have to by buying or shorting the stock itself. That sentiment can in turn affect interest in a company’s shares. Read More
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