Tech CEOs lose billions of dollars amid increased market volatility
Tech CEOs lose billions of dollars amid increased market volatility

Despite several days of declines, the stock market indices ended the week slightly higher, making up for some of the widespread losses this month. The market's troubles are far from over, however.  Many CEOs and founders of technology companies are, not surprisingly, among the billionaires whose fortunes have fallen the most since the market close, according to Forbes estimates.

22 billion dollars in losses for Elon Musk

Leading the declines for the second week in a row, Elon Musk saw his fortune plummet by $22 billion after Tesla's shares fell more than 10 percent. Although he retains the title of the world's richest man, the Tesla CEO now has a net worth of $222.2 billion, according to Forbes estimates. While his company has posted record profits as evidenced by its recent quarterly earnings release, investors have focused on the warning that supply chain issues could hurt Tesla 2022's growth.

Musk also took to Twitter to insult President Joe Biden in response to being snubbed at a White House forum with electric vehicle manufacturers. Also affected by the tough week for tech stocks, Oracle co-founder Larry Ellison, meanwhile, dropped from fifth to eighth place among the world's richest people over the week. According to the famous magazine, his fortune would have dropped by 3.4 billion dollars due to the 2% loss suffered this week by his company's shares.

Coinbase CEO lost $600 million

Other notable billionaires whose net worth fell this week include Airbnb CEO Brian Chesky and Roblox co-founder David Baszucki. Chesky lost $1.1 billion to $11.3 billion, while Airbnb shares fell 9 percent. Meanwhile, Roblox's shares fell nearly 16 percent, reducing the company's CEO's fortune by about $700 million.

Like tech stocks, cryptocurrencies have been experiencing huge losses for several weeks. This phenomenon has naturally impacted the fortune held by the CEOs of the industry's largest companies. This is notably the case of Brian Armstrong, CEO of Coinbase. He has seen the net value of his fortune drop by about $600 million to $7.3 billion.

With the announcement of the Fed's tightening of monetary policy and upcoming interest rate hikes, investors may continue to shy away from risky technology stocks. The value of technology stocks may fall further, affecting the fortunes of technology CEOs in the process. 

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Nathan George

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