One of the trends last week was that some big-name companies were halting their advertising spending on social media platforms, like Facebook and Twitter. The movement gained some steam throughout the week, and Facebook stock was down 8.3% on Friday.
The headline was that Mark Zuckerberg lost $7 billion due to the Facebook stock drop. While Zuckerberg’s net worth statement will show that $7 billion drop, he didn’t actually lose any money. Zuckerberg, and every other investor, only loses money when they sell shares.
Before shares are sold, it’s called an unrealized gain or loss. While the share price of Facebook dropped, Zuckerberg has a big unrealized gain in the grand scheme of things — he brought the company from start to where his shares are now valued over $7 billion.
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