Threads of Success: How Meta's New App Boosted Mark Zuckerberg's Net Worth by $9 Billion
On Thursday (July 27, 2023), Mark Zuckerberg, the founder of Meta (formerly known as Facebook), experienced a substantial increase in his wealth, with his net worth surging by as much as $9 billion. This significant boost was a result of Meta's stock soaring by 9% following the release of an impressive second-quarter earnings report, as per Business Insider. The positive financial results were attributed to a revival in advertising revenue for Meta and the enthusiastic response from investors to the successful launch of Threads, the company's answer to Twitter. As the parent company of Facebook, Meta benefited greatly from these developments.
Mark Zuckerberg's remarkable recovery amidst market turmoil
Zuckerberg's personal fortune has been on a roller-coaster ride in 2023. Owning slightly over 13% of Meta, his total net worth has more than doubled since the beginning of the year, marking a remarkable recovery from the challenges he faced in 2022. During that year, Meta's stock experienced a severe decline, plunging more than 70%. As a result, Zuckerberg's net worth was heavily impacted, plummeting from approximately $125 billion at the start of 2022 to a low point of around $35 billion in November of the same year, per the Bloomberg Billionaire Index.
However, since reaching its rock bottom last fall, Meta's stock made an impressive comeback. It has more than tripled in value, contributing to Zuckerberg's net worth bouncing back to approximately $118 billion as of today. The bulk of his wealth continues to be tied to his stake in the social media giant, making him one of the most influential and affluent figures in the tech industry. With the success of Threads and the recovery of Meta's stock, Zuckerberg's financial prospects have seen a remarkable turnaround, demonstrating his resilience and ability to adapt to challenging market conditions.
If the 9% increase in Meta's stock value remains steady, Mark Zuckerberg is poised to surpass four prominent billionaires, ascending to the esteemed rank of the world's sixth richest person. Currently, Steve Ballmer, Warren Buffett and Larry Page all boast a net worth hovering around $117 billion while Sergey Brin's total net worth stands at approximately $111 billion. The remarkable 165% surge in Meta's stock value since the beginning of the year has proven to be a major catalyst in elevating Zuckerberg's wealth. In fact, this year alone, the soaring stock has added an astounding $70 billion to his net worth.
Threads vs. Twitter
Elon Musk's Twitter threatened legal action against Meta, Facebook's parent company, concerning its newly introduced competitor social media app, Threads. On the night of Threads' launch, Alex Spiro, Musk's personal lawyer who had previously assisted him during the takeover of Twitter took the initiative to send a formal letter to Mark Zuckerberg. The letter addressed Twitter's "serious concerns" regarding the legality of Threads, as initially reported by Semafor. Insiders later confirmed the existence of the letter, which contained an accusation against Meta. It claimed that the company had utilized "Twitter's trade secrets and other intellectual property" in the development of Threads. This allegation formed the core of the brewing legal dispute between Elon Musk's Twitter and Meta.
Meta's strong second-quarter earnings report, coupled with the triumph of its Twitter competitor, Threads, has spurred investor confidence and propelled Meta's stock to new heights. In terms of wealth gained year-to-date, only Elon Musk, the CEO of Tesla, outpaces Zuckerberg. Musk's remarkable fortune has increased by a staggering $103 billion in the same period, setting an impressive standard for wealth accumulation in the world of business and technology.
