Report: Facebook CEO Mark Zuckerberg drops off world's 40 richest people list

Mark Zuckerberg

(CBS/AP) At 28 years old, Mark Zuckerberg had been among the youngest-ever members of world's 40 richest people list. His youthfulness should now give him plenty of time to rejoin the most elite ranks of the uber-rich, following reports of his slip from the rankings Tuesday.

According to the Bloomberg Billionaires Index, Zuckerberg dropped out of the Top 40 when shares of his newly-public company hit a low of $28.84 after trading on Tuesday. He was replaced on the list by Mexican billionaire Luis Carlos Sarmiento.

The Facebook CEO's fortune fell to $14.7 billion on Tuesday from $16.2 billion on May 25, Bloomberg reports.

Zuckerberg's pocketbook isn't alone in taking a hit. Four of the 20 youngest billionaires in the world can attribute their fortunes to Facebook's success, according to Forbes. In addition to Zuckerberg, Dustin Moskovitz (Facebook's third-ever employee), Sean Parker, and co-founder Eduardo Saverin, all have their billionaire fortunes tied to Facebook's financial health.

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Facebook began trading publicly on May 18 following one of the most anticipated stock offerings in history. The stock priced at $38 a day before the company's public debut. The company's market capitalization has since decreased $25 billion in its first seven days of trading.

The launch was from far from smooth. The stock's public debut was marred by technical glitches at the Nasdaq exchange that delayed trading. And the company, along with the investment banks that led the IPO, is the subject of shareholder lawsuits.

The investors allege that analysts at the the investment banks, including lead underwriter Morgan Stanley (MS), cut their financial forecasts for Facebook just before the IPO and told only a handful of clients. Morgan Stanley has declined to comment. Facebook says the lawsuits are "without merit."

[sully36]

Poor little Baby, how are you going to make ends meet?

[rnrstar]

Didn't anyone learn ANYTHING from the dot.bomb of 2001? Apparently not.

[Resin-Smoker]

DOA, yet another useless website thats been hyped to death.

[AnnieDanny]

It seems to me they haven't had anything GOOD to say since Facebook went public, so of COURSE that's hurting their business. If the News Media would stop saying it's "The Worst" then it would probably improve.

[Mikey_Mo]

That pose, I've seen it somewhere before. :O|
Now the Zealot will have to work twice as hard to keep up appearance. What a Bummer dude.
You can do it man with that little boy freckle look, people always fall for that look! Ha-ha!

[smittyc]

The investment community was aware FB was not a good bet while the media pumped this IPO. Every broker, brokerage and small investor knew My Space sold for 350 million just a few months ago. FB was dead at the launchpad, stick a fork in it.

[nohater]

facebook does nothing. it produces no products, no services, doesn't manufacture a thing. why would anyone invest in facebook? it's revenue is due to those who advertise, ads, on facebook. facebook is just one huge electronic bulletin board online for mostly the narcissistic. if facebook dies people can fall back on telephone calls, email, chatrooms, IM, snail mail or getting off their behind and actually visiting friends and family. heck, people can even set up their own family website to keep in touch with family and friends.

[askagain]

Think about all of the dot.coms that failed taking investor money with them. Many were hot although many never turned a profit. I'm still kicking myself for not purchasing Starbucks stock. The concept of reinventing coffee made no sense to me at the time yet we all know the result. Facebook could easily be another Starbuks. True investors generally understand the risks when they invest.

[niclark79]

Luis Carlos Sarmiento is a Colombian billionaire, not a Mexican.

[chromenun]

CBSnews, please have someone proof-read your stories BEFORE you post them...this one is more than problematic!!! I expect more from you, and you should also expect more from yourselves...I am not even going to sit here and point them out...

[fedup12]

facebook was so last week.

now I like Pinterest

[senexxx]

I am predicting a complete melt down, well below 10$ very soon.