With more than 1.62 billion daily active users, Facebook Inc. (NASDAQ: FB) is the most popular social networking site worldwide and also one of the most rewarding technology sector stocks for investors, generating a 327.7% return since its IPO, as of market close on November 22, 2019 (not accounting for reinvested dividends). It was the fastest company in history to reach a market capitalization value of $250 billion, achieving that mark within just three years of its initial public offering (IPO) and boasts a market cap of $566.98 billion as of market close on November 22, 2019. Facebook is a component of both the NASDAQ 100 Index and the Standard & Poor's 500 Index (S&P 500).
Facebook announced its Q3 2019 earnings on October 30, 2019. The social networking company reported $17.65 billion in revenue this quarter, a 28% increase over the same period last year. Here are the company's six largest individual shareholders.
Facebook stock is widely held by large institutional investors, mutual funds, and ETFs. The individual Facebook shareholders with the largest amount of Facebook stock are all present or former key figures at Facebook. Class A shareholders have one vote for each share while those with Class B shares have 10 votes for each share held.
- Facebook founder Mark Zuckerberg is the company's largest shareholder, with 12.18 million Class A shares and 365.72 million Class B shares.
- Co-founder Eduardo Saverin is the second-biggest shareholder, with 7.5 million Class A shares and 45.9 million Class B shares.
- Dustin Moskovitz is the third-biggest Facebook shareholder, with 32.6 million Class B shares and no Class A shares.
- Jan Koum, the WhatsApp founder and former CEO—and former Facebook board member—reportedly still holds 5.57 million Facebook Class A shares, as of a 2018 SEC filing.
- Facebook chief operating officer (COO) Sheryl Sandberg holds 1.35 million Class A shares and 770,000 Class B shares.
- Facebook's chief technology officer, Michael Schroepfer, has a total of 960,583 Class A shares and no Class B shares.
The founder and "face" of Facebook indirectly holds around 12.18 million Class A Facebook shares through a series of funds, and a whopping 365.72 million Class B shares, per the company's April 12, 2019, proxy statement. Control over nearly 80.9% of the Class B shares gives Zuckerberg 53% voting rights in the company. However, Zuckerberg also has voting rights over co-founder Dustin Moskovitz's Class B shares, giving him effectively 57.7% voting rights in the company.
On July 25, 2018, Zuckerberg sold 240,000 shares of Facebook common stock. The stocks sold at an average price of $216.71, for a total transaction of just over $52 million.
Mark Zuckerberg started Facebook in his Harvard dorm room and has become one of the most famous businessmen in the world. Zuckerberg and Facebook have come under fire in the Cambridge Analytica scandal where it was revealed that the latter accessed user data and then targeted certain political advertisements to those users. Zuckerberg—in a written statement before the House of Representatives—admitted that the company had not done enough to protect its users.
Zuckerberg's net worth is estimated at $72.3 billion, as of November 2019.
Over 1.62 billion
The number of daily active users of Facebook, as of the third quarter of 2019.
Brazilian entrepreneur and Facebook investor Eduardo Saverin was also a founding member of the social network. Saverin holds 7.5 million Class A shares of Facebook, along with 45.9 million Class B shares that account for 6.7% voting power in the company, according to the proxy statement from April 12, 2019. Saverin, once responsible for Facebook's business segment, was edged out of the company with his stake diluted by Zuckerberg in 2005. The spat resulted in a lawsuit filed by Saverin that was settled out of court. Saverin also made headlines when he renounced his U.S. citizenship ahead of the Facebook IPO, a move that would have helped him save on taxes.
His net worth as of November 2019 is $11.1 billion.
Another Facebook founder, Dustin Moskovitz, holds 32.6 million Class B shares as of April 12, 2019. Interestingly, he has a voting agreement on these shares in favor of Zuckerberg that the proxy counts among the latter's voting rights. The filing also notes that Moskovitz did not respond to the company's request to disclose his ownership of Class A shares and accounts for no such shares in his name based on information available. Moskovitz left Facebook in 2008 and went on to found Asana, a workflow management software company. Moskovitz was named the "youngest self-made billionaire" by Forbes Magazine in 2011.
His net worth is $12.2 billion as of November 2019.
Co-founder of the world's biggest mobile messaging service, Jan Koum holds 5.57 million Facebook Class A shares, according to a May 15, 2018 filing with the SEC. That's down from the 14.2 million shares he held as of Facebook's April 13, 2018, proxy statement, reflecting published reports that Koum was disposing of billions of dollars worth of Facebook shares as he separated from the company. Koum's story is a true rags-to-riches tale. An immigrant from Ukraine, he survived on his mother's disability income and food stamps until he secured a job as a security and infrastructure engineer at Yahoo Inc. (NASDAQ: YHOO) in 1998.
After working under the tutelage of Yahoo co-founder David Filo for nine years, Koum left the company in 2007, and, in 2009, he designed and launched the WhatsApp mobile messaging service. WhatsApp was acquired by Facebook in 2014 for approximately $22 billion, at which time Koum obtained a seat on Facebook's board of directors. In April 2018, Koum resigned as CEO of WhatsApp and announced he would leave Facebook's board as well.
His net worth as of November 2019 is $10.2 billion.
Sheryl Sandberg indirectly holds 1.35 million Class A shares through a trust and another 770,000 Class B shares, according to the April 12, 2019, proxy statement. Sandberg has held the position of chief operating officer (COO) at Facebook since 2008. Prior to joining the company, Sandberg's experience included serving as chief of staff to U.S. Treasury Department Secretary Larry Summers, being vice president of global online sales and operations for Google, and working as an economist for the World Bank. Sandberg earned an MBA from Harvard Business School and is the author of the book, Lean In: Women, Work, and the Will to Lead.
Sandberg's net worth is $1.8 billion as of November 2019.
Facebook's chief technology officer, Michael Schroepfer, comes in as Facebook's sixth-largest shareholder. According to the company's April 12, 2019, proxy statement, Schroepfer has a total of 960,583 Class A shares and no Class B shares. A year earlier, according to the April 13, 2018 proxy, Schroepfer owned 716,987 Class B shares of the company. Schroepfer came aboard at Facebook in 2008 as vice president of engineering. Since 2013, he has been the company’s chief technology officer, tasked with managing and developing the vast technological infrastructure that supports the heavy traffic of the Facebook site. Schroepfer earned a bachelor’s and a master’s degree in computer science at Stanford University. His net worth is estimated at $567 million, as of November 2019.