Mark Zuckerberg, once the fifth wealthiest man in America, slipped more than a few notches this week. With all the issues the social media giant has dealt with lately, the worst was probably letting shareholders know that profits were going to drop after implementing new security measures. As a consequence, Zuckerberg’s holdings plunged more than $15 billion in just one day.
• Second quarter results had likely already made shareholders leery when they missed projected amounts in marketing and revenue.
• Wednesday, Zuckerberg announced that spending for security and privacy on the social media platform would continue to rise in order to make the site more secure, causing profits to temporarily drop.
• Facebook expenses are expected to rise up to 60% in 2018.
• Stocks plunged by 19% after Zuckerberg’s announcement, the largest drop the company has seen since its creation.
• Zuckerberg’s push for more security and privacy comes on the tail of the Cambridge Analytica scandal that caused many users to question whether the potential breech into their private information was even worth using the site.
• While Facebook isn’t likely to disappear anytime soon, Zuckerberg is most likely going to do everything he can to prevent the site from going the way of MySpace and other sites that were once heavily populated and are now just fond memories.
• For users, this is good news, as it demonstrates how seriously Zuckerberg took the data breach. Seriously enough that he was willing to face the financial consequences he must have seen coming.