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Singaporean billionaire businessman Forrest Li has lost 80% of his fortune; out of the top 500 richest people in the world



Singaporean billionaire businessman Forrest Li has lost 80 of his fortune out of the top 500 richest people in the world

Only a few months ago, Forrest Li had a US$22 billion fortune and was the richest person in Singapore. Presently he’s arising as one of the biggest washouts from a market crash that is cleared more than US$1 trillion off of the net worth of the world’s 500 richest people this year.

Forrest Li, the co-founder of tech giant Sea Ltd and one-time richest Singaporean, has been seriously hit by the new global stock market crash.

It’s been a reiteration of awful events for the Sea founder: The tech selloff, the closure of its main e-commerce operation in India, and disheartening earnings have failed the organization’s American depository receipts by more than 80% from a peak in October 2021.

This was ascribed to “disappointing earnings” and a withdrawal by Shopee from India’s retail market declared in March 2022. The e-commerce platform is owned via Sea Ltd.

Forrest Li’s as yet rich – worth US$4.7 billion, as indicated by the Bloomberg Billionaires Index – however at this point insufficient to make the cutoff for the top 500 in the world.

Traders are planning for all the more awful news. The organization, which is scheduled to report first-quarter earnings later on Tuesday (May 17), is expected to post a record loss of more than US$740 million, as per the average examiner estimate ordered by Bloomberg.

Nonetheless, recent developments like the U.S. Federal Reserve’s hike in interest rates and the Russian invasion of Ukraine have added to an ongoing downturn in the markets.

Sea’s net loss had already extended in the final three months of last year as the firm accelerated its extension.

The downfall showcases the vulnerability of the speedy wealth creation from the beginning phases of the COVID-19 pandemic – when tech goliaths profited from greater demand for their services like Sea’s e-commerce and gaming. Higher interest rates and the strains surrounding the war in Ukraine are further harming development stocks.

“Sea is going to see increasing challenges in 2022,” said Shawn Yang, managing director at Blue Lotus Capital, an independent equity research firm in Hong Kong that cut the stock’s target cost to US$105 from US$180 on May 10.

The organization’s e-commerce sales, its primary source of revenue, could come short of its annual guidance of US$8.9 billion to US$9.1 billion as it faces increasing competition from rivals including Alibaba and as consumers return to offline stores with the facilitating of COVID-19 limitations, Yang said.

A Sea delegate declined to comment for this story.

Beyond Forrest Li, numerous tech entrepreneurs who saw their wealth rise on the rear of the pandemic-initiated development are being struck by the market selloff. Eric Yuan, CEO of Zoom Video Communications, has lost US$4.4 billion of wealth this year, while the fortune of’s Jeff Bezos, the world’s second-richest person, is down nearly US$58 billion. Ernie Garcia II and Ernie Garcia III, the father-son duo that runs used-car organization Carvana, have shed US$15 billion consolidated.

Sea’s valuation breakdown incited the normally low-profile Forrest Li to connect with his employees in March. In a 900-word internal memo, he told them not to dread and that while the drop is painful, “this is short-term pain that we have to endure to truly maximize our long-term potential”.

Experts generally stay hopeful about Sea’s future even though the stock fell to a two-year low earlier this month. Of the 38 experts followed by Bloomberg covering it, 34 suggest buying it.

The organization’s valuation might start to bounce back as prospects improve with its geographical development, as indicated by Nathan Naidu, an investigator with Bloomberg Intelligence.

For the present, however, the shares remain volatile. After a 32 percent rebound amid a tech rally in the last two days of last week, they dropped 6.7 percent on Monday.

Gang Ye, one of the other organization founders, has lost US$4.3 billion in wealth this year, while David Chen is no longer a billionaire.

“In the current economic environment, the level of anxiety about the effects of anticipated rate hikes by the Fed, along with rising inflation and impact from the Russian invasion of Ukraine just isn’t good for risky assets such as tech stocks,” BI’s Naidu said.

In any case, while stung by the crash and as of now not one of the world’s top 500 richest people, Forrest Li is as yet one of Singapore’s wealthiest individuals.

Forbes World’s Billionaire’s List assessed Forrest Li in April 2022 as being worth US$5.3 billion (S$7.4 billion).

As indicated by the Bloomberg Billionaire’s Index, Forrest Li is presently worth US$4.7 billion (S$6.5 billion), which may as yet purchase more than 726 million Big Mac Extra Value Meals.

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