Alphabet

Mark Zuckerberg ⁢Falls Out ⁤of World’s Top 3 Richest amid Meta’s AI ⁤Investment Concerns

MENLO⁣ PARK, CA – Mark Zuckerberg has dropped from the ranks of the world’s three richest individuals following a significant decline⁤ in Meta’s share price, according to the Bloomberg Billionaires Index. The shift comes after Meta reported ‌third-quarter 2025 earnings that disappointed⁤ investors, despite a revenue increase. Zuckerberg previously held the ⁣third ‌position, behind Larry‍ ellison ‍(Oracle) and Elon Musk (Tesla).

the financial setback represents the ⁢fourth-largest ​loss ⁤in the history​ of the Bloomberg Billionaires‌ Index, surpassed only by a larger drop‌ during Meta’s “metaverse betting” period in 2022.

Meta’s earnings⁤ per share⁢ (EPS) reached USD 1.05, substantially below ‍analyst expectations of USD 6.72 – an 83% year-on-year decrease.While revenue rose to USD 51.2 billion, exceeding the anticipated USD 49.5 billion, profits were significantly impacted by a⁤ one-time USD 15.9 billion tax charge stemming from ​the‍ implementation ​of the “One‌ Big Beautiful Bill Act” under‌ former​ US President Donald‍ Trump.Meta clarified that ​this charge⁢ is non-cash and will offset future tax liabilities, estimating an adjusted EPS of USD 7.25 without the tax⁢ burden.

The downturn coincides with Meta’s enterprising transition from a social media company to a consumer ⁢AI giant. The company is heavily investing in⁤ artificial intelligence⁣ through a new division, Superintelligence Labs, actively recruiting top AI talent to develop “personal AI superintelligence”​ for it’s ‌billions of users.

This aggressive expansion has ‍raised investor concerns. Meta announced plans​ to issue up to ‍USD 30 billion in bonds to ‌fund the project and anticipates capital expenditure (capex) between USD 70-72 billion in 2025, possibly rising to USD 118 billion in 2026. Several​ Bloomberg analysts downgraded⁤ Meta shares, citing risks to short-term profitability.⁢

Zuckerberg remains optimistic, describing AI investments ⁤as a “generational ⁢paradigm ‍shift” ‍with long-term benefits. He owns approximately 13% of Meta’s shares.

Meta’s‌ previous foray into the metaverse,⁣ initiated with a rebranding in 2021, was largely considered ⁣unsuccessful,⁣ resulting in a 24% share decline in 2022. The company is now pivoting towards superintelligence,⁢ with new products like Vibes, an AI-powered video platform launched in⁢ September, already generating over 20 billion images. ​Zuckerberg views this as a step towards making‌ “AI for everyone.”

The situation highlights broader volatility within the⁢ technology sector. Alphabet saw a 2.7% increase following positive earnings,while Microsoft experienced a 2.2% decrease ⁤due to a USD 3.1 ​billion investment in OpenAI. ‌Analysts suggest Meta’s ⁤key challenge lies ‌in balancing long-term innovation with immediate profit expectations in the increasingly competitive AI landscape.

(afr/afr)