Mark Zuckerberg Rises to Become the World’s Second Richest Person

Second Richest Person

Mark Zuckerberg Rises to Become the World’s Second Richest Person

Mark Zuckerberg has overtaken Jeff Bezos, becoming the world’s second richest person with an impressive net worth of $206.2 billion, as reported by the Bloomberg Billionaires Index. This remarkable jump in his wealth comes after Meta’s stock value soared by 23%, driven by robust quarterly earnings and increased investor enthusiasm around the company’s advancements in artificial intelligence.

Zuckerberg VS Elon Musk

Zuckerberg VS Elon Musk

This year, Zuckerberg’s wealth has surged by $78 billion, mainly thanks to his 13% ownership in Meta. He now stands about $50 billion behind Elon Musk, a notable comeback after earlier challenges with his investments in the metaverse. This rebound highlights his resilience in the tech world, despite previous financial hurdles.

Thanks to his 13% stake in Meta, Zuckerberg’s net worth has grown by $78 billion since the start of the year—more than any of the 500 wealthiest individuals tracked by the Bloomberg Index. On Thursday, Meta’s shares reached an all-time high, closing at $582.77, which marks a remarkable 68% increase from their early January price of $346.29.

Increase In Second-Quarter Revenue

Throughout 2024, Wall Street has remained highly supportive of Meta, as the company consistently posts quarterly earnings that exceed analyst expectations. In July, Meta reported a 22% increase in second-quarter revenue, reaching $39.07 billion, marking the fourth consecutive quarter with revenue growth above 20%.

Meta credits its substantial investments in artificial intelligence for boosting the effectiveness of its online advertising platform, which has driven its recent sales growth. The company faced a significant challenge in 2021 when Apple’s iOS privacy update limited Meta’s ability to track users online. In February 2022, Meta estimated that these privacy changes would lead to a $10 billion loss in revenue.

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At the end of 2022, Zuckerberg launched a significant cost-cutting plan that continued into the following year, leading to job cuts for 21,000 Meta employees—about a quarter of the company’s entire workforce.

Investors responded positively to Meta

Investors responded positively to Meta

Investors responded positively to Meta’s cost-cutting measures as the company’s online advertising business started to recover. This resurgence was further supported by significant digital advertising campaigns from Chinese retailers like Temu and Shein.

Although Meta is still investing billions in the virtual and augmented reality technologies essential for realizing the metaverse, investors have grown more accepting of these expenditures, provided that the company’s core advertising business stays strong.

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Malik Sultan

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