Snap co-founders Evan Spiegel and Bobby Murphy could be close to losing their billionaire status after being the youngest U.S. billionaires on Forbes’ lists for subsequently of four years.
Spiegel, who is 28, and Murphy, who is 30, have seen certain unfortunate nearly $3 billion a piece since Forbes’ 2018 Billionaires list in March. Spiegel and Murphy’s net worth dropped from $4.1 billion and $4.2 billion in March, respectively, to just $1.3 billion each on December 20, due to a staggering decline of Snap’s stock price, which has plunged 65% since 2018.
Shares of Snap includes chat and video messaging app Snapchat, have plunged in value since February as the app has constantly lost its user base of teens and millennials. In October, 2018, the company reported a 1% drop in total monthly users from its second quarter to third quarter, to a total of 186 million daily users.
Moreover, Snap’s retention problems don’t appear to be ending any time soon. However, the company warned investors in October that it expects to continue to lose daily active users.
Meanwhile, the sudden decrease in California-based company value has seen departure of several employees with alarming frequency. Snap’s content chief announced his term to end with the company in November; Steve LaBella departed in October and chief strategy officer Imran Khan resigned in September. In addition to, Snap’s former head of engineering, Tim Seh, left in December 2017.
Snap faces rigid competition from Facebook FB -1.38%-owned Instagram, which has more than 1 billion monthly active users, on the other hand, short-form video app TikTok and its Chinese version Dǒuyīn have about 500 million monthly users globally.
If Snapchat can’t show compelling user growth or engagement trends real soon, the founders will likely forfeit their billionaire status, too. According to Forbes, if Snap’s stock drops from its current $5 price to $3.50, the founders’ share ownership and estimated cash holdings fallen down, the young moguls will both lose their place in the three comma club.