On Monday, Meta Platforms shares experienced a significant decline in value, leading to a sharp drop in the assets of owner and CEO Mark Zuckerberg. By the end of trading on April 25, Meta Platforms shares had fallen by 11%, resulting in a loss of $18 billion for Zuckerberg. This marked the 11th largest single-day decrease among the world’s billionaires on the Bloomberg Billionaires Index.
Zuckerberg’s wealth is largely tied to his ownership of Meta shares, which currently amount to $157 billion. As a result of the drop in share value, Zuckerberg slipped to the 4th position on the list of the world’s richest individuals, making way for Tesla CEO Elon Musk, whose assets increased by $5.8 billion as Tesla’s shares rose.
The decline in Meta shares came after the company announced that second-quarter revenue might fall short of analysts’ expectations. Additionally, Meta raised its investment forecast in new AI products and support infrastructure to a range of $96-99 billion. The company’s increased focus on artificial intelligence has raised concerns among investors, as the payoff for these investments may take years to materialize.
Despite yesterday’s drop, Meta’s stock has seen a 25% increase since the beginning of the year. The company’s market capitalization currently stands at around $1,120 billion. The recent excitement surrounding AI technology has helped push Meta’s stock towards its historical peak over the past month.
While Zuckerberg’s wealth took a hit with the drop in Meta shares, Musk’s fortunes have been on the rise thanks to Tesla’s performance. The competitive landscape among the world’s richest individuals continues to shift as market dynamics and company performance play out.