After Wednesday’s market close, Snapchat CEO lost one billion dollars, and it doesn’t seem like a big deal.
Who can take a financial hit of over a billion dollars, and still walk it off with millions in the bank? Evan Spiegel, CEO of Snapchat.
He awoke on Thursday with his pockets lighter than usual. In what would have been devastating news to us mere mortals, his net worth had dropped by $1.22bn (£780mn).
His losses are due to the company’s poor market performance on Wednesday night, where Snapchat’s shares plummeted by roughly 24%.
Since Snap became a public company in March, its presence on the market is marred by unpredictability.
Snapchat CEO lost one billion dollars, Facebook closes in
As such, Spiegel is experiencing first-hand the impact of this change, and his personal wealth is taking the blow.
Furthermore, he controls 44% of the company. This level of ownership directly links him to the company’s conduct on the market.
Apart from a disappointing first quarterly report, Snap might have to stand down Facebook as an emerging competitor.
The social networking giant plans to release a camera feature obviously inspired by Snapchat’s shenanigan-causing filters.
After a failed attempt to buy out Snapchat for $3bn (£2.33bn) in 2013, Facebook seems to console itself through copying it.
Its subsidiary Instagram has already famously mimicked the photo-sharing app through cloning its stories idea.
Even more galling, is that Instagram’s active users now outstrip those of its predecessor’s.
Perhaps Snapchat console’s itself with the thought that imitation is the sincerest form of flattery.
When asked whether Facebook presents a threat to Snapchat, Spiegel reportedly laughed.
“At the end of the day, just because Yahoo has a search box, it doesn’t mean they’re Google.”
Furthermore, even after the Snapchat’s sub par market performance earlier this week, the CEO is far from broke.
Thus, Spiegel currently claims a net worth of $4.35bn (£3.38bn).
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