Snap’s stock price decline is having a brutal effect on the fortunes of the company’s co-founders.
Evan Spiegel, who is also CEO of the company, has seen his net worth drop 83% in the past year, as of Friday. according to Bloomberg. Spiegel was worth $13.9 billion on October 21, 2021, and is currently worth around $2.3 billion.
Co-founder and CTO Bobby Murphy saw its value drop by 81% to $1.9 billion, according to Bloomberg.
While the losses are on paper and both founders are still billionaires, the sharp drop underscores Snapchat’s troubled position in the social media space these days. The company recently posted a $360 million quarterly net loss and has struggled to attract advertisers. This occurs when user growth is stalling, but hasn’t stopped completely.
Snap has announced plans to lay off roughly 20% of its staff and reportedly plans to Leave their San Francisco offices. He also shut down his Web3 team last month, along with several projects including a social mapping app, an app that would have allowed people to write songs collaboratively and a drone selfie camera.
Spiegel, in May, warned of tough times ahead, saying in a memo that macroeconomic challenges were leading to a slowdown in growth at Snapchat, noting that there has been a significant cutback in digital ad spending due to the combination toxic of rising interest rates, sky-high inflation, supply chain challenges and the war in Ukraine.
That letter was one of the first executive warnings to highlight the rapidly changing economic conditions at the time.
Murphy and Spiegel aren’t the only corporate leaders to see their net worth plummet in the past year.
The CEO and co-founder of Caravana, Ernest García III, has seen its fall of 94% in the last year. His son Ernie Garcia II has dropped 76%. And Shopify founder and CEO Tobi Lutke is down 76%.
Overall, Bloomberg says, the world’s 500 richest people have seen their collective net worth fall by nearly $1.7 trillion since the start of the year.
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