Meta CEO Mark Zuckerberg has overtaken Jeff Bezos cas the world’s second-richest person, according to the Bloomberg Billionaires Index. As of Thursday, Mark Zuckerberg’s net worth climbed to $206.2 billion, edging out vBezos, the former Amazon CEO and president, whose wealth stands at $205.1 billion. The only person ahead of Mark Zuckerberg is Tesla and SpaceX CEO Elon Musk, with a lead of around $50 billion.
Mark Zuckerberg’s surge in wealth can be attributed to the success of Meta, where he holds a 13% stake. His net worth has increased by a remarkable $78 billion since the beginning of 2024, marking the largest gain of any individual tracked by the Bloomberg Billionaires Index. This leap in wealth is largely due to Meta’s rising stock value, which hit a record high of $582.77 on Thursday, reflecting a 68% increase from the start of the year when shares traded at $346.29.
Mark Zuckerberg’s ascent to the second-richest spot highlights the close link between his personal wealth and the growing investor confidence in Meta’s profitability. Throughout 2024, Wall Street has rallied around Meta as the company consistently exceeded analysts’ earnings expectations. In July, Meta reported a 22% year-over-year sales increase for the second quarter, with revenue reaching $39.07 billion. This marked the fourth consecutive quarter where revenue growth exceeded 20%.
Meta’s recovery from the challenges of 2021, when Apple’s iOS privacy changes severely impacted its online advertising system, has been a key factor in its financial success. The privacy update, which made it harder for Meta to track users across the web, was initially projected to cost the company $10 billion in revenue. However, Meta’s investments in artificial intelligence have helped improve its advertising platform’s performance, aiding in the company’s turnaround.
In late 2022, Mark Zuckerberg initiated a significant cost-cutting strategy that led to the layoff of 21,000 employees, roughly 25% of Meta’s workforce. This move was well-received by investors, particularly as the company’s core advertising business began to rebound. Chinese-linked retailers Temu and Shein contributed to Meta’s recovery with substantial digital ad spending.
Despite Meta’s ongoing investments in virtual and augmented reality technology for the metaverse, investors have been more patient with these expenditures as long as the company’s advertising business continues to perform well. Last week, Meta introduced its Orion AR glasses, which received positive feedback from early testers, further boosting confidence in the company’s future innovations.
