A crashing stock market has caused the personal fortune of the 39-year-old Twitter CEO to fall from $2.2 billion to $944 million in just four months.
Yesterday morning, Dorsey's two companies - Twitter and Square - fell six per cent and 11 per cent respectively.
Twitter shares were a record low before rising 4.1 per cent later in the day. But the social media site is still down 57 per cent in the past 12 months.
Mobile payments company, Square, fell below its initial public offering price of $9 for the first time on Wednesday before recovering slightly. It's stock is down 28 per cent this year.
Reports of Dorsey's falling wealth were first made by Kate Vinton, who tracks the world’s wealthiest people for Forbes.
“At the Forbes 400 in September, we pegged Dorsey’s net worth at $2.2bn, thanks in large part to Square’s $6 billion dollar private valuation,' she writes.
'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 $944m as of 10:30 am.'
In October, Dorsey was reappointed as CEO of Twitter, after being forced out in 2008.
But many still disagree with the way he runs Twitter, including experiments to introduce an extra-long tweet, which could chance the nature of the platform completely.
And it's not just Twitter's slumping share price that Dorsey has to worry about. Technical probelms have also plagued the site.
On Tuesday, millions of internet users were unable to use Twitter for more than an hour-and-a-half after the site crashed.
Users of the micro-blogging site were confronted with the image of a broken robot along with a message that read 'something is technically wrong'.
They were couldn't to login to the social network, or view and send any tweets using either desktops or mobile devices.
An outage map created by downdetector.co.uk showed the problem affected users in Western Europe, including the UK, and in Japan.
Twitter reversed a glitchy software update and resolved outages not long after the problem was reported.
Wall Street has long worried about Twitter's stagnant growth in users and advertising revenue, and analysts said the outage added to the concern.
'The current market malaise and the recent site outages are compounding the negatives and having a very negative reaction on the shares,' said Victor Anthony, Axiom Capital Management analyst.
Some users who tweeted with the hashtag #twitterdown reported they had not experienced problems or that their service had been restored.
Others said they were still having problems after Twitter's announcement.
Many pointed out that Twitter could not have been down for everyone since #twitterdown was among the top trending hashtags on the site.
Twitter currently has just over 300 million users but had its slowest user growth in 2015.
It was eclipsed by photo-sharing app Instagram, which is owned by Facebook Inc and surpassed 400 million users last year.
Yesterday morning, Dorsey's two companies - Twitter and Square - fell six per cent and 11 per cent respectively.
Twitter shares were a record low before rising 4.1 per cent later in the day. But the social media site is still down 57 per cent in the past 12 months.
Mobile payments company, Square, fell below its initial public offering price of $9 for the first time on Wednesday before recovering slightly. It's stock is down 28 per cent this year.
Reports of Dorsey's falling wealth were first made by Kate Vinton, who tracks the world’s wealthiest people for Forbes.
“At the Forbes 400 in September, we pegged Dorsey’s net worth at $2.2bn, thanks in large part to Square’s $6 billion dollar private valuation,' she writes.
'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 $944m as of 10:30 am.'
In October, Dorsey was reappointed as CEO of Twitter, after being forced out in 2008.
But many still disagree with the way he runs Twitter, including experiments to introduce an extra-long tweet, which could chance the nature of the platform completely.
And it's not just Twitter's slumping share price that Dorsey has to worry about. Technical probelms have also plagued the site.
On Tuesday, millions of internet users were unable to use Twitter for more than an hour-and-a-half after the site crashed.
Users of the micro-blogging site were confronted with the image of a broken robot along with a message that read 'something is technically wrong'.
They were couldn't to login to the social network, or view and send any tweets using either desktops or mobile devices.
An outage map created by downdetector.co.uk showed the problem affected users in Western Europe, including the UK, and in Japan.
Twitter reversed a glitchy software update and resolved outages not long after the problem was reported.
Wall Street has long worried about Twitter's stagnant growth in users and advertising revenue, and analysts said the outage added to the concern.
'The current market malaise and the recent site outages are compounding the negatives and having a very negative reaction on the shares,' said Victor Anthony, Axiom Capital Management analyst.
Some users who tweeted with the hashtag #twitterdown reported they had not experienced problems or that their service had been restored.
Others said they were still having problems after Twitter's announcement.
Many pointed out that Twitter could not have been down for everyone since #twitterdown was among the top trending hashtags on the site.
Twitter currently has just over 300 million users but had its slowest user growth in 2015.
It was eclipsed by photo-sharing app Instagram, which is owned by Facebook Inc and surpassed 400 million users last year.
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