Social media companies’ share prices soared during the pandemic as people spent more time online. Now those stocks are coming back to Earth—along with the fortunes of their billionaire founders. In just one day, the fortunes of the billionaire founders of Snap, Meta Networks, Pinterest and Twitter fell by a combined $10 billion, Forbes estimates.
Shares of Snap, the parent company of Snapchat, plummeted an astounding 43% on Tuesday from Monday’s close following Snapchat’s downward revision late Monday of its initial second quarter guidance. The social media company said it expects to bring in less revenue and profit than originally anticipated. As a result, Snapchat cofounder and CEO Evan Spiegel is $1.7 billion poorer than on Monday, a 35% decline as of market close Tuesday. He’s now worth an estimated $3.1 billion. Snap cofounder Bobby Murphy’s fortune fell by $1.9 billion on Tuesday to an estimated $2.9 billion.
“The macroeconomic environment has deteriorated further and faster than anticipated,” Snap said in a filing Monday with the Securities and Exchange Commission.
Snap did not immediately respond to a request for comment from Forbes.
Snap shares have been declining since last fall, a trend that continued after Apple let users opt out of targeted ads last year. The move particularly hurt Snapchat; shares closed Tuesday at $12.79, an 85% drop from their peak at more than $83 in late September.
Spiegel isn’t the only social media billionaire getting hammered by big changes in the global economy, including inflation, the war in Ukraine, higher interest rates, declining user interest and marketers spending less money on ads. Pinterest, Meta Platforms (formerly known as Facebook) and Twitter stocks all declined on Tuesday, as investors worry that Snap’s worsening outlook portends a dire year for other social media companies.
After Snap, Pinterest is the second worst hit in percentage terms. Shares of the photo-sharing website cratered by nearly 24% on Tuesday. Cofounders Ben Silbermann and Paul Sciarra are now worth $1.1 billion each after losing 20% of their net worths in less than a day.
Meta Platforms, which operates Facebook Instagram and WhatsApp, is down 7.6% since Monday, erasing $5.2 billion from founder Mark Zuckerberg’s fortune. Twitter shares fell 5%, causing a $405 million hit to founder Jack Dorsey’s net worth.
Shares of Google parent Alphabet, not a social media company but a big tech bellwether, fell 5% on Tuesday, dragging down Google founders Sergey Brin and Larry Page’s fortune by a combined $9 billion.