The net worth of Meta’s CEO Mark Zuckerberg dropped by over $22 billion on Thursday, with shares of the Facebook parent company slumping after the tech giant’s first-quarter earnings exceeded expectations but anticipated slow growth. Meta shares fell more than 13% to 426.47, while Zuckerberg’s net worth stood at $151 billion, down $22.1 billion on the day.
During Meta’s first-quarter earnings call on Wednesday, the company projected lower-than-expected second-quarter sales and forecasted heavy costs in its artificial intelligence division, with no clear path to operating profits. Despite this, Zuckerberg remains the fourth richest person in the world, behind Bernard Arnault, Jeff Bezos, and Elon Musk. Meta earned $36.46 billion in sales during the first quarter of 2024, exceeding estimates and up 27% from the previous year.
Facebook co-founder Dustin Moskovitz also saw a decrease in his net worth by $2 billion, down 11.63%. He is currently ranked 103rd on Forbes’ billionaires list, with an estimated net worth of $15.8 billion. The tech giant’s emphasis on developing its AI capabilities was discussed during the earnings call, with the recent launch of Llama 3, its standalone AI chatbot. Despite being primarily an advertising company, with ads accounting for 99% of its revenues, Meta is investing heavily in AI technology.
The planned investments in AI, along with anticipated slower growth in the second quarter, caused concern among investors and led to the sharp decline in Meta’s stock price. Zuckerberg mentioned during the call that Meta AI is on the path to becoming the most used and best AI assistant in the world, despite currently operating at a loss. The transitions of Instagram Reels, Stories, and News Feeds to mobile platforms have also contributed to stock volatility. JPMorgan analyst Doug Anmuth noted that Meta’s comparisons to previous scaling periods may worry investors, even though there are expectations of long-term payoffs.
Overall, Meta’s stock plummeted after the earnings call, despite the company’s impressive sales figures for the first quarter. The focus on AI technology and investments in projects that are currently money-losing has sparked concerns among investors about the company’s future profitability. Zuckerberg remains a centibillionaire, but the drop in his net worth highlights the volatility of the stock market and the uncertainty surrounding tech companies and their growth strategies. Investors will be closely watching Meta’s next moves and financial performance in the coming quarters.
