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Business News/ Companies / News/  Gautam Adani's over $71 billion wealth wipe out reminds us of this tech CEO
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Gautam Adani's over $71 billion wealth wipe out reminds us of this tech CEO

On Bloomberg Billionaire Index, Gautam Adani's wealth dropped by $71.5 billion by end of February 20, 2023. He isn't the first to face the savagery of correction in stocks. Mark Zuckerburg, the man behind the world's largest social-network Meta Platforms, faced a similar path not too long ago.

By end of February 20, 2023, Zuckerburg holds the 19th position in the rich list with a net worth of $64.3 billion. (AFP)Premium
By end of February 20, 2023, Zuckerburg holds the 19th position in the rich list with a net worth of $64.3 billion. (AFP)

The amount of money Gautam Adani, the founder of the energy-to-consumer goods empire Adani Group, has lost in just a matter of a couple of weeks is mind-boggling. On Bloomberg's billionaire index, Adani's rank has dropped to 25th. His losses in wealth are to the breath-taking $71.5 billion year-to-date. But Gautam Adani isn't the first to face the savagery of correction in stocks. Mark Zuckerburg, the man behind the world's largest social-network Meta Platforms, faced a similar path not too long ago.

However, it needs to be noted that, the reason behind the erosion in Zuckerburg's wealth is far different than Gautam Adani's current situation. The only similarity is that both of their wealth dropped significantly after their stocks corrected steeply on exchanges.

By end of February 20, 2023, Zuckerburg holds the 19th position in the rich list with a net worth of $64.3 billion. His wealth has climbed at the latest by $129 million. Year-to-date, his wealth has increased by $18.7 billion.

But this was not the case in September last year for Zuckerburg. He lost many spots in the ultra-rich.

Last year, on September 19th, Bloomberg reported Zuckerburg's fortune has been cut in half and then some, dropping by $71 billion in nine months of 2022, the most among the ultra-rich tracked by the Bloomberg Billionaires Index. At $55.9 billion, his net worth ranked 20th among global billionaires, which was his lowest spot since 2014 and behind three Waltons and two members of the Koch family.

The reason behind Zuckerburg's billions of dollars of losses at that time was to be blamed on the market rout in 2022 which led to a massive correction in Meta stock price. The year 2022 has gone down in the history as equity market struggled due to macroeconomic risks like inflationary pressure and energy crises, coupled with geopolitical tension, recession fears, the China Covid situation, and the rate hike cycle.

Apart from this, the downfall in Meta stock was also attributed to the company's investment in the metaverse. Among FAANG peers, Meta took a massive beating in 2022.

As per Bloomberg data, Zuckerburg's wealth dropped even below $35 billion on November 3, 2022. In the first week of January last year, Zuckerburg's wealth was around $126 billion.

The reason behind Zuckerburg's billions of dollars of losses at that time was to be blamed on the market rout in 2022.
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The reason behind Zuckerburg's billions of dollars of losses at that time was to be blamed on the market rout in 2022. (Bloomberg Billionaire index)

There was a time when Zuckerburg was among the top three billionaires in the world. He was the youngest among them and ranked beside big names such as Bill Gates, Jeff Bezos, and Warren Buffett. Zuckerburg's wealth rose to a peak of $142 billion in September 2021. During this time, the Meta share price had hit a high record high of $384.33 on Nasdaq.

Zuckerburg changed the social media giant Facebook's name to Meta in October 2021.

In 2022, Meta's share price nosedived by 64.5% on Nasdaq. The stock was near the $120 per piece level on December 30, 2022.

But both Zuckerburg nor Adani do not hold the title of losing the largest amount of money due to market rout. It would belong to Tesla's CEO Elon Musk. 

Last month, it was reported by Guinness World Records that Elon Musk broke the record for losing the largest amount of money by one person. His wealth was wiped out between $180 billion and $200 billion since November 2021, majorly owing to the poor performance of Tesla stocks.

 

 

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Published: 20 Feb 2023, 11:42 PM IST
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