Mark Zuckerberg Lost $5 Billion Dollars As Social Stocks Drag Down Markets

A sell-off of tech stocks resulted in the markets closing lower on Monday. The Dow Jones Industrial Average shed 335.60 points closing at 24,610.91. The S&P 500 fell 39.09, finishing the day at 2,712.92 while Nasdaq Composite dropped 137.74 points closing at 7,344.24. Social media stocks were the big losers with Facebook losing around eight percent of its value at one point during the day. Facebook CEO Mark Zuckerberg reportedly lost over $5 billion due to the sell-off of Facebook stock. 

The sell-off follows reports that the Facebook data of nearly 50 million customers was used by Cambridge Analytica without their consent. The data was used for political purposes during the 2016 presidential election.

One analyst said the news is an "indication of systemic problems at Facebook," but the issue will not have a "near-term tangible impact on its business." 

"We think this episode is another indication of systemic problems at Facebook … We see enhanced risks for the company, but no near-term tangible impact on its business," Brian Wieser, an analyst at Pivotal Research, said in a note Monday. 

Apple, Amazon, Netflix and Google's parent company Alphabet, all suffered losses on the day following news that the European Union is considering a new revenue tax on tech giants. 

Photo: Getty Images


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