The Twitter co-founder Jack Dorsey has been booted from the “billionaire club” after Twitter shares hit a record low. The social media mogul had his net worth drop from over $2.2 billion to $944 million, removing the tech guru from his prized billionaire status. Dorsey lost over $1.2 billion of his net worth in just four months after Twitter share prices plummeted 57 cents per share during the last year. The shares dropped as the social media giant faces numerous technical issues while Dorsey’s other tech baby, Square, also suffered significant losses in the stock market.
— Forbes (@Forbes) January 20, 2016
The Daily Mail reports that Twitter co-founder Jack Dorsey is no longer a member of the elite “billionaire club.” Following a paltry year for the tech creator’s two powerhouse companies, Twitter and Square, his net worth is plummeting rapidly. Now, the tech guru’s fortune is no longer in the tune of billions but rather millions.
In fact, the situation for Dorsey seems to only be getting worse. Just yesterday, Twitter dropped 11 percent while Square dropped 6 percent in stock price. The Square payment service is, for the first time, at a stock price that is under its initial offering at just $9 per share. In total, Square is down 28 percent over the past 12 months whereas Twitter is down 57 cents per share.
According to Forbes, Jack Dorsey’s net worth has fluctuated dramatically over the past year with his high point in September 2015 with a valuation of $2.2 billion. However, Forbes net worth trackers note that Dorsey took a big hit in November of 2015 when Square went public in November. At that time, Dorsey’s net worth plummeted $800 million but he remained a billionaire. However, with both companies’ stock prices falling, Dorsey has taken another larger hit and has officially fallen from billionaire status.
“At the Forbes 400 in September, we pegged Dorsey’s net worth at $2.2 billion, thanks in large part to Square’s $6 billion dollar private valuation. His net worth dropped $800 million to just below $1.4 billion when the company went public in November at $11.20 a share. Now, with both companies struggling on the stock market, he’s fallen out of the three-comma club with a net worth of $944 million as of 10:30 am.”
The troubles stem from multiple technical issues that the social media giant Twitter has been experiencing over the last few months. For example, on Tuesday of this week, millions of Twitter users were forced off of the website for over half an hour as the social media site crashed. However, technical issues are only the beginning of problems for Dorsey. The co-founder was placed back in the position of Twitter CEO in October of 2015 and many people are questioning his methods. Twitter has long been run on the idea that shorter is better in regard to sharing ideas or updates. However, Dorsey introduced the idea of an “extra long tweet” option that many say would change the social media platform at its core.
— TechCrunch (@TechCrunch) January 21, 2016
What do you think about Jack Dorsey’s planned changes for Twitter? Do you think the co-founder is being too ambitious in changing the face of Twitter to the point that potential share buyers are nervous about investing in the social media company? Do you think Jack Dorsey will join the billionaire club once again in 2016?
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