The social media company has contended for years with criticism about its content policies, its failure to safeguard private data and its changing rules for advertisers. Those problems hadn’t mattered to the success of the business — until now.
The 3rd World’s richest man as of the last ranking is presently counting the cost of user disenchantment with Facebook Inc.
His fortune tumbled by $16.8 billion in late trading Wednesday, as shares of the social media giant slid 20 percent at 5:37 p.m. in New York on disappointing results. If that holds through Thursday’s close, he will slide to sixth place from third on the Bloomberg Billionaires Index. It would also wipe his $13.7 billion of gains for the year, leaving him with just less than $70 billion.
Second-quarter revenue and average daily visitors fell shortof analysts’ estimates, according to a statement from the Menlo Park, California-based company. Revenue increased 42 percent to $13.2 billion, missing the $13.3 billion Wall Street consensus. The company is grappling with new data laws in Europe, criticism over its content policies and privacy issues.