Meta’s Stock Plunge Sparks Wealth Decline
Mark Zuckerberg saw his net worth drop by $29.2 billion, following investor concerns over Meta Platforms’ $30 billion debt sale to fund artificial intelligence (AI) research.
This is the fourth-largest one-day market-driven wealth decline recorded on Bloomberg’s Billionaires Index.
Stock Performance and Market Reaction
Meta’s stock fell 11%, marking its largest drop since 2022, after the company announced the largest investment-grade bond offering of the year.
Prior to this decline, Meta shares had gained 28% this year, adding $57 billion to Zuckerberg’s fortune.
Investor doubts centered on Meta’s ballooning AI budget, with analysts warning that capital expenditures could reach $118 billion in 2025 and possibly increase in 2026.
Bloomberg Billionaires Index Update
The stock drop caused Zuckerberg to fall to fifth place on the Bloomberg Billionaires Index, the lowest ranking in nearly two years.
He was surpassed by Jeff Bezos of Amazon and Larry Page of Alphabet, who both regained higher positions following strong earnings.
Alphabet shares rose 2.5%, driven by cloud computing growth and high demand for AI services. Amazon shares increased more than 30% since mid-April, boosted by its cloud unit and AI collaborations with firms like Anthropic.
Investors Wary of Meta’s AI Spending
The market reaction shows that while AI is a growth opportunity, investors are cautious about Meta’s massive spending plan.
Meta’s ambitious AI investment strategy has created short-term volatility, impacting share prices and the fortunes of its top executives.
