The founder of Symbotic, Rick Cohen, has experienced a significant loss in his net worth, plummeting by $9 billion. This dramatic decrease is directly linked to the sharp decline in his company’s stock price. Symbotic, which specializes in AI-driven warehouse robots, went public in mid-2022 and has garnered support from prominent investors like SoftBank Group Corp and Walmart.
Cohen, who also serves as the owner and chairman of C&S Wholesale Grocers, saw his net worth reach $21.4 billion at the start of this year, placing him 94th on the Bloomberg Billionaires Index. However, his wealth has dramatically shrunk to $12.6 billion this year, dropping him to 178th place.
The root of this decline lies in Symbotic’s stock performance. After a remarkable 325% surge last year, the stock has plummeted over 60% in 2024. The company’s value has now shrunk to under $10 billion.
Several factors have contributed to this downfall. Construction delays and escalating implementation costs have significantly impacted the company’s profit margins. Adding to the woes, Symbotic is facing a class-action lawsuit alleging that it misled the market about its growth potential.
This setback comes shortly after Symbotic reported its third-quarter financial results, which highlighted the increased costs and project delays. These challenges have considerably impacted the company’s profitability. The recent lawsuit further adds to the company’s difficulties. The impact of these challenges extends beyond the company’s stock performance, as it has also led to a significant reduction in the net worth of its founder.
