Rise of Zuckerberg: Meta Stock Climbs
Meta Platforms, Inc. has flourished as one of the top stocks in the Magnificent 7 lineup this year, standing behind Nvidia Corp. The company’s remarkable performance has propelled its CEO, Mark Zuckerberg, to ascend the ladder of the world’s wealthiest individuals.
Zuckerberg Surpasses Bezos in Wealth
Bloomberg’s billionaire list now showcases Zuckerberg’s ascent to the rank of the second-richest person globally after Tesla, Inc.’s Elon Musk, surpassing Jeff Bezos, the founder of Amazon, Inc. This shift in position comes as Meta’s stock exhibits superior performance compared to Amazon’s this year.
Stock Performance Comparison
Meta has surged over 64% year-to-date, contrasting with Amazon’s more modest 20% rise. The divergence between the two stocks became evident in late September, with Amazon deviating from its previous trajectory following Meta’s lead.
Zuckerberg’s Wealth & Musk’s Position
Zuckerberg’s net worth now stands at $206 billion, slightly edging past Bezos’ $205 billion. Of significance, Zuckerberg trails Musk’s wealth by a mere $50 billion. Given Meta’s potential compared to Tesla’s challenges, Zuckerberg might soon pose a threat to Musk’s top spot in the wealth rankings.
Meta’s Strong Performance Amid Challenges
Meta’s success is attributed to its adaptability during the COVID-19 period, benefiting from remote work trends and lockdown measures. While facing setbacks such as declining revenue and Apple’s privacy initiatives, Meta’s strategic measures, including workforce reductions and operational streamlining, have fueled its stock rebound.
Moreover, Meta’s initiatives in AI and the Metaverse have sparked investor interest, contributing to its stock’s upward trajectory. The recent Meta Connect 2024 event unveiled innovative products that have further bolstered the company’s outlook.
Amazon’s Challenges and Market Position
Operating primarily in e-commerce, Amazon faces uncertainties tied to consumer spending patterns. Despite its diverse business portfolio, including AWS and acquisitions like Ring and Twitch, Amazon’s revenue heavily relies on its e-commerce operations, making it susceptible to market fluctuations.
Analysts have highlighted near-term risks for Amazon, signaling concerns about holiday season performance and competitive pressures. However, long-term prospects remain positive as the company pursues strategic cost structures to enhance profitability.
On the market front, Meta closed higher on Thursday at $582.77, while Amazon dipped to $181.96, continuing a losing streak. Worries over the upcoming holiday season have impacted Amazon’s stock performance, contrasting Meta’s upward momentum.