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)
