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| Mark Zuckerberg's fortune fell to $14.7 billion yesterday from $16.2 billion on May 25 |
MARK
Zuckerberg, Facebook (FB) Inc.’s co- founder and chief executive
officer, is no longer one of the world’s 40 richest people.
The
28-year-old’s fortune fell to $14.7 billion yesterday from.. $16.2
billion on May 25, as shares of the world’s largest social-networking
company dropped 9.6 percent to $28.84. That extended the stock’s losses
to 24 percent from the worst- performing large initial public offering
in the past decade.
“It seems to be a clear
reflection that there was just too much stock issued, that the valuation
was aggressive and that a lot of people who lined up to buy it really
had no intention of holding it,” Jack Ablin, chief investment officer of
BMO Harris Private Bank in Chicago, said yesterday in a telephone
interview. The bank oversees about $60 billion of assets.
Facebook shares closed at $38.23 on May 18, the
first day they began trading, giving Zuckerberg a net worth of $19.4
billion. The Menlo Park, California-based company ended the day with a
price-earnings ratio of 83.1, making it more expensive than 99 percent
of Standard & Poor’s 500 Index (SPX) stocks. The company went public
as the equity index was heading for its biggest monthly decline since
September.
Facebook options trading began
yesterday, with volume for puts exceeding calls by 1.2 to 1, data
compiled by Bloomberg show. More than 200,000 puts were traded, giving
the holder the right to sell the shares at a specified price. June $30
puts were the most active contracts, with volume at 23,835. They were
followed by June $34 calls and June $32 calls, which carry the right to
buy the shares.
Zuckerberg is now $800
million behind Luis Carlos Sarmiento, who ranks 40th with a fortune of
$15.5 billion on the Bloomberg Billionaires Index, a daily ranking of
the world’s wealthiest people.
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