📉 Meta’s AI Spending Sparks Investor Concern
Mark Zuckerberg’s net worth dropped $29.2 billion, the fourth-largest one-day decline in Bloomberg’s wealth index. The fall came after Meta Platforms Inc announced plans for a $30 billion debt sale to fund artificial intelligence (AI) research and development.
Investors reacted nervously to Meta’s aggressive AI investment strategy, sending the company’s shares down 11% — the steepest drop since 2022. This decline moved Zuckerberg to fifth place on the Bloomberg Billionaires Index, the lowest rank he has held in nearly two years.
💰 Meta’s Stock Performance
Before the drop, Meta stock had surged 28% this year, adding $57 billion to Zuckerberg’s fortune. However, concerns over the company’s rising AI budget led analysts to downgrade shares, citing expected capital expenditures of up to $118 billion in 2025, with potential increases in 2026.
The market reaction reflects growing caution over technology companies heavily investing in AI development amid uncertain short-term returns.
🌐 Tech Rivalry Shakes Billionaire Rankings
The decline allowed Jeff Bezos of Amazon and Alphabet’s Larry Page to overtake Zuckerberg. Both had not ranked among the top four wealthiest individuals since October 2023.
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Alphabet shares rose 2.5% after beating revenue expectations, boosted by demand for its cloud and AI services.
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Amazon shares climbed over 30% since April, with investors impressed by growth in cloud computing and AI collaborations, including deals with firms like Anthropic.
