(Updated at 6:23 p.m.)
At least the wedding went off without a hitch.
Since Facebook founder Mark Zuckerberg offered a piece of his social networking company to the public and tied the knot with longtime girlfriend Priscilla Chan two weeks ago, his personal fortune and that of his company have taken sizable hits.
Facebook’s stock has plunged since the public began buying shares May 18, and the drop has shaved at least about $25 billion from the $104 billion valuation placed on the company. The stock was down again Wednesday.
The stock, which was priced at $38 for the initial public offering, is down nearly 26 percent since the IPO, extending its spirial Wednesday to close at $28.19, down 65 cents, or another 2.25 percent from Tuesday’s close. That means the value of Zuckerberg’s holdings is also down, by nearly $5 billion as of Tuesday and in just two weeks, according to Bloomberg’s daily ranking of the world’s richest people.
As a result, Bloomberg has knocked Zuckerberg off its list of top 40 billionaires worldwide. The 28-year-old is no longer in the company of Bill Gates, Warren Buffett and the Waltons of Walmart.
On May 18, Zuckerberg’s Facebook holdings were valued at $19.4 billion, instantly making him the 26th richest man on Earth. By Tuesday, the value of his shares had dropped to $14.7 billion. Of course, it’s only a loss on paper, and the loss is only realized If the shares are sold.
Some investors have been so disappointed in the loss of value after purchasing the stock that they are suing the company, the IPO’s underwriters and Nasdaq, which trades Facebook’s stock under the symbol FB, claiming Facebook wasn’t fully upfront about its growth prospects.
Facebook’s stock reached as high as $45 in the euphoria just after the IPO, but it hit a low of $27.86 Wednesday before trading ended for the day. Bloomberg reports Facebook’s stock price would have to drop to around $23 to be in line with the valuations of other Internet companies. It’s currently trading at 29.5 times the company’s projected 2014 profit of $2.69 billion.
Zuckerberg was replaced on the Bloomberg Billionaires Index by Luis Carlos Sarmiento, Colombia’s richest man, worth $15.5 billion.
Zuckerberg was honeymooning with Chan in Europe this week.