Quick Read
- Mark Zuckerberg lost $29.2 billion overnight as Meta’s AI spending spooked investors.
- Meta’s stock dropped 11%, pushing Zuckerberg to fifth place on the Bloomberg Billionaires Index.
- Tech rivals Jeff Bezos and Larry Page overtook him, buoyed by strong earnings in cloud and AI.
- Investor anxiety is mounting over aggressive AI investments across big tech.
- Billie Eilish called out billionaires like Zuckerberg to donate more, sparking fresh debate about wealth.
Meta’s AI Spending Sends Shockwaves Through Wall Street
Mark Zuckerberg, the CEO and co-founder of Meta, has long been known for his willingness to bet big on the future of technology. But this week, his latest gamble—a massive investment in artificial intelligence—sent shockwaves through Wall Street, wiping $29.2 billion off his net worth overnight and dropping him two spots on the Bloomberg Billionaires Index. Zuckerberg now sits at fifth place, his lowest rank in nearly two years, below tech titans Jeff Bezos and Larry Page. (Business Insider, Mario Nawfal/X)
Meta’s quarterly earnings call was the catalyst. The company revealed plans to ramp up capital expenditures for AI, announcing it could spend as much as $72 billion in 2025 and even more in 2026. Investors reacted swiftly and sharply, sending Meta’s stock plunging nearly 11% by Thursday evening. Two analysts immediately downgraded the stock, labeling Meta’s AI ambitions as “too aggressive.”
Investor Anxiety Mounts Over AI Ambitions
The size and speed of Meta’s planned investments have left many on Wall Street uneasy. While Zuckerberg defended the strategy during a tense call with analysts, arguing that it’s better to be over-prepared than caught short when the next wave of AI breakthroughs arrives, not everyone is convinced. JPMorgan analyst Doug Anmuth pressed Zuckerberg on the surging costs, and the CEO admitted that in the “very worst case,” Meta would incur some depreciation costs from building capacity ahead of demand—a risk he deemed preferable to missing out on the next big leap in AI.
Other tech giants are facing similar scrutiny. Microsoft’s own earnings report revealed a record $34.9 billion in capital expenditures last quarter, prompting a 3% drop in its stock price. Peter Berezin, chief market strategist at BCA Research, described these declines as a “yellow flag” for the AI trade. He warned that if major firms keep announcing huge capex plans only to see their shares fall, it could signal the beginning of the end for the current AI investment frenzy.
Tech Power Shifts: Bezos, Page, and the New Billionaire Order
While Meta’s fortunes tumbled, Amazon and Alphabet rode a wave of strong earnings to new heights. Jeff Bezos’s wealth dipped by $6.6 billion, but Amazon’s stock soared more than 13% after reporting major growth in its cloud business. Alphabet’s shares rose 2.5% on the back of surging revenue from Google Cloud and AI services, pushing Larry Page ahead of Zuckerberg on the billionaire list.
Elon Musk remains the undisputed number one, his fortune buoyed by ongoing speculation about a potential trillion-dollar Tesla deal. For Zuckerberg, the reversal was swift and dramatic: Meta’s stock had been up 28% this year, adding $57 billion to his wealth, until investor fears over AI spending flipped the script. Now, he’s gone from AI visionary to Wall Street cautionary tale in a matter of hours.
Social Responsibility and the Billionaire Dilemma
Outside the boardroom, the debate over billionaire wealth and responsibility continues to simmer. At the Wall Street Journal’s Innovator Awards, pop superstar Billie Eilish used her acceptance speech to call out the assembled billionaires—including Zuckerberg—for hoarding wealth. Announcing her own $11.5 million donation to charity, Eilish said, “If you’re a billionaire, why are you a billionaire? No hate, but yeah, give your money away, shorties.”
The moment was met with applause from the crowd, but observers noted that Zuckerberg did not join in. As AV Club reported, the CEO’s muted reaction underscored the growing tension between tech moguls and public sentiment. Despite Eilish’s gentle nudge, there was no immediate rush among the billionaire guests to follow her example.
What’s Next for Zuckerberg and Meta?
Zuckerberg’s willingness to take enormous risks has defined Meta’s trajectory—from the metaverse push that wiped $100 billion off his wealth in 2022, to this year’s audacious AI spending spree. The question now is whether his vision will pay off, or whether Meta will be left with costly infrastructure and little to show for it. Some analysts believe the company is “pre-building” for a future that may not arrive as quickly as hoped, risking significant write-offs if AI breakthroughs stall.
For now, Zuckerberg remains steadfast. In his own words, it’s better to be ready for the next wave than to be left behind. But as investors grow increasingly cautious, and as public scrutiny of billionaire wealth intensifies, the road ahead looks uncertain—even for one of tech’s most influential figures.
Assessment: Zuckerberg’s latest AI gamble is a powerful reminder that even the world’s wealthiest are vulnerable to the unpredictable currents of innovation and investor sentiment. As Meta races toward an AI-powered future, the stakes—for its CEO, its shareholders, and the broader tech landscape—have never been higher. The outcome will hinge not only on technological breakthroughs, but on whether leaders like Zuckerberg can balance bold vision with fiscal discipline and social responsibility.