Meta CEO Mark Zuckerberg has now surpassed Jeff Bezos, the former Amazon chief, to claim the title of the second richest person in the world, according to the Bloomberg Billionaires Index. With a net worth soaring to $206.2 billion, Zuckerberg’s fortune surged past Bezos’ $205.1 billion, making headlines across the globe. The only person standing between Zuckerberg and the number one spot? Tesla and SpaceX’s Elon Musk, who leads with a net worth of $50 billion more than Zuckerberg.
Zuckerberg’s Meteoric Wealth Rise: The Numbers Behind the Story
2024 has been nothing short of a financial whirlwind for Zuckerberg, whose wealth skyrocketed by an astonishing $78 billion this year alone—more than any other individual tracked by the Bloomberg Billionaires Index. This monumental rise is primarily due to his 13% stake in Meta, the social media juggernaut that has seen record stock performance. On Thursday, Meta’s stock hit an all-time high, closing at $582.77, marking an impressive 68% jump since the start of the year when it was trading at $346.29.
Why Wall Street Can’t Stop Cheering Meta
Investors have been rallying behind Meta as the company continues to shatter expectations. Its quarterly earnings have repeatedly beaten analyst predictions, with second-quarter sales climbing a massive 22% to $39.07 billion—Meta’s fourth consecutive quarter of revenue growth surpassing 20%. The driving force? Meta’s cutting-edge artificial intelligence tools, which have turbocharged its advertising business and enabled the platform to recover from previous setbacks like Apple’s 2021 iOS privacy changes.
Zuckerberg’s strategic investments in AI have been a game-changer. The improved performance of Meta’s online ad system has delighted Wall Street, with advertisers returning in droves. Chinese e-commerce powerhouses Temu and Shein have contributed to the rebound, funneling billions into digital ad campaigns on the platform.
The Price of Success: Meta’s Bold Cost-Cutting Moves
But this triumph didn’t come without sacrifice. Late in 2022, Zuckerberg launched an aggressive cost-cutting plan that extended into 2023, leading to the unfortunate layoffs of 21,000 employees, or roughly a quarter of Meta’s workforce. Investors responded positively to these moves, seeing them as essential for sustaining profitability in the face of growing expenses.
A Peek Into the Future: Meta’s AR Glasses and Beyond
While the company has been focused on bolstering its advertising platform, Zuckerberg hasn’t abandoned his vision of the metaverse. Meta continues to pour billions into virtual and augmented reality, betting on the future of immersive tech. Just last week, Meta debuted its highly anticipated Orion AR glasses, receiving glowing reviews from early testers. Though metaverse investments haven’t yet hit the jackpot, shareholders are more forgiving as long as Meta’s core business remains strong.
As 2024 unfolds, the big question remains: Will Zuckerberg close the gap on Elon Musk? With Meta’s rapid growth and Zuckerberg’s savvy leadership, it’s a race that’s becoming more exciting by the day.