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Daily Digit: Zuckerberg's $5.8 bln cut

Friday, May 17, 2013 - 01:30

May 17 - Mark Zuckerberg has lost $5.8 billion in value on his Facebook stock since the world’s leading social network went public just about a year ago. Conway G. Gittens reports.

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The Daily Digit is $5.8 billion. Mark Zuckerberg has lost that much money on paper since he took Facebook public almost one year ago, on May 18th. From the get-go, it was a downward spiral for the stock. First, a computer glitch made Nasdaq halt trading during the debut, later Zuckerberg had to face the big question -- how was he going to make enough money on the social network to satisfy investors. Looking at Facebook's consecutive quarterly results, he bet on mobile ads. That bet showed Wall Street the network is keeping up with consumers' shift from PCs to smartphones. And it also helped lift revenue and offset some spending. In recent months, Facebook has rolled out a string of big product launches and revamps, including an overhaul of its newsfeed and search feature, as well an app for Android smartphones that puts Facebook features front and center, called Facebook Home. Last year, the network splurged on Instagram. Basically, investors are focused on two things: one is mobile and how big it could be, and the other is engagement. Facebook says it has roughly 1.11 billion monthly active users, and about 665 million daily active users. The number of monthly users who logged on solely through mobile more than doubled from a year ago. Good numbers, but not good enough to erase the almost $6 billion hole in Zuckerberg's net worth.

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Daily Digit: Zuckerberg's $5.8 bln cut

Friday, May 17, 2013 - 01:30