Mark Zuckerberg, the co-founder and CEO of Meta Platforms Inc., saw a dramatic drop in his net worth by over $22 billion Thursday as Meta's stock prices plunged, Forbes reported.

This significant loss, a 13% drop, allowed Tesla's Elon Musk to solidify his position as the world's third-richest billionaire.

Meta's Plunge Leads to Zuckerberg's $22B Loss, Musk's Wealth Soars

The drop in Zuckerberg's net worth was triggered by Meta's shares plummeting by as much as 16% in New York, as reported by VCPost.

This follows the company's announcement that its second-quarter sales were expected to fall below estimates. 

This one-day decrease marks the fourth-largest drop related to a stock move among billionaires listed in the Bloomberg Billionaires Index, with Zuckerberg's fortune now resting at $155 billion.

In contrast, Elon Musk's wealth increased by $400 million, reaching $178 billion as Tesla's stock continued to climb after its earnings report, according to Bloomberg.

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Meta's Stock Plunge Amid Investments in AI

The decline in Meta's shares, based in Menlo Park, California, was the steepest since October 2022. 

It was fueled by Meta's revised spending estimates for the year and projections of lower-than-expected second-quarter sales. 

These developments raised concerns among investors about the company's future profitability, particularly regarding its investments in artificial intelligence (AI).

Meta's stock had previously been on an upward trend, up by 22% for the year and trading near all-time highs due to optimism surrounding its AI initiatives. 

However, the latest earnings call and spending forecasts led to a sharp market reaction, which indicates investor sensitivity to growth projections and spending plans in the tech sector.

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