Because of Meta’s most recent decline in market value, Elon Musk, the CEO of Tesla, has once again surpassed Mark Zuckerberg, the owner of Facebook, Instagram, WhatsApp and Threads.
Even though Facebook’s parent company posted better-than-expected first-quarter profitability, it nevertheless saw a $132.2 billion decline in market capitalisation on Thursday, according to Quartz.
Investors who were alarmed by the tech giant’s AI initiatives and muted second-quarter projections contributed to the loss. On Friday during regular trade, Meta’s worth decreased to $1.11 trillion.
As of Thursday, Musk’s net worth was $184 billion, based on Bloomberg’s Billionaire Index. According to the same index, Zuckerberg’s net worth has dropped significantly from the $175 billion that was estimated for him last week to $157 billion.
This occurred just a few days after Tesla released its disappointing earnings results, showing that its revenue growth rate had decreased by 9% year over year — the largest decrease since 2012. Musk assured investors that Tesla would soon start selling EVs at a lower price, so investors remained unfazed.
Even after the tech company revealed that its revenue was 30% greater than the previous year, Meta did not see the same level of investor trust.
Meta’s stock dropped 12% when the company released its earnings. Investors seemed fixated on Meta’s AI initiative and its dismal revenue forecast for the second quarter; the social media company estimated it would bring in between $36.5 billion and $39 billion.