Meta Platforms CEO Mark Zuckerberg saw his personal wealth drop by over $29 billion in a single day this week. The significant decline followed investor concerns about the company's aggressive spending on artificial intelligence (AI) infrastructure. This sharp fall pushed Zuckerberg to his lowest ranking on the Bloomberg Billionaires Index in nearly two years.^{[1][2][3][4][5][6]} ### Capital Expense Triggers Market Reaction The "two words" largely responsible for wiping out $29.2 billion from Zuckerberg's fortune were "Capital Expense," or CAPEX.^[4][6] Meta has announced plans for "notably larger" capital expenditures in the coming year, primarily driven by massive investments in artificial intelligence. This includes a major push to build new data centers to power its expanding AI initiatives.^[4][5][6] Wall Street reacted negatively to Meta's substantial spending forecast. The company's stock plunged by 11% on Thursday, October 30, marking the steepest one-day drop since 2022.^{[1][2][3][4][5]} Investors were particularly worried about Meta's strategy to issue $30 billion in new debt to finance these AI investments.^[4][6] Meta's third-quarter earnings report showed a 26% growth in revenue, which surpassed market expectations. However, this positive revenue growth was overshadowed by a 32% increase in overall company costs.^[4][6] The company also updated its total expense forecast for 2025, projecting it to reach as much as $118 billion. A significant portion of this, up to $72 billion, is earmarked for capital expenditures to expand its AI infrastructure. Even higher spending is anticipated for 2026.^[4][5][6] Several financial analysts downgraded Meta's stock in response to the staggering outlay. Some warned that the company's ambitious AI plans could severely squeeze future profits.^[4][5][6] This investor anxiety highlights a broader concern about the scale and speed of Meta's planned investments.^[5] ### Zuckerberg's Ranking Falls The $29.2 billion loss was the fourth-largest one-day market-driven decline ever recorded on the Bloomberg wealth index.^[2][4][6] This financial hit caused Mark Zuckerberg to fall two spots on the Bloomberg Billionaires Index. He dropped from third to fifth place, now ranking below Amazon founder Jeff Bezos and Alphabet Inc.'s Larry Page.^{[1][2][3][4][5][6]} His current net worth is estimated at $235.2 billion, making this his lowest ranking on the index in nearly two years.^[2][3][4][6] Earlier this year, Zuckerberg's net worth had surged by $57 billion, driven by a 28% rise in Meta shares, as he was closing in on the top spots held by Elon Musk and Jeff Bezos.^[4][5][6] ### A Pattern of Big Bets This is not the first time Meta's large-scale strategic shifts have impacted Zuckerberg's wealth significantly. In February 2022, Meta's stock experienced a massive plunge of 26.4%, leading to a nearly $30 billion drop in Zuckerberg's personal fortune then.^[7][8] That earlier decline was attributed to a combination of factors, including the company's first-ever drop in daily user numbers, increased competition from platforms like TikTok, and the impact of Apple's privacy changes on Meta's advertising revenue.^{[9][10][11][8][12][13]} At that time, Meta was heavily investing in the metaverse, a long-term project that also raised investor skepticism about short-term profitability.^[10][14][13] The company had rebranded from Facebook to Meta in late 2021 to reflect this strategic pivot.^[11][8] Investors expressed concern about a surge in spending without guaranteed returns.^[14] During a call with analysts this week, Zuckerberg defended Meta's current aggressive AI investment strategy. He argued that it is better for the company to be over-prepared for the next wave of AI breakthroughs than to fall behind.^[5] JPMorgan analyst Doug Anmuth pressed Zuckerberg on the rising costs. The CEO acknowledged that in a "very worst case," Meta might incur some depreciation costs from building capacity ahead of demand. However, he stated this risk was preferable to missing out on the next major leap in AI technology.^[5] Other major tech companies are also increasing their capital expenditures for AI. Microsoft, for example, reported a record $34.9 billion in capital expenditures in its last quarter, leading to a 3% drop in its stock price.^[5] This indicates a broader industry trend of significant investment in AI, but Meta's scale of spending has particularly unsettled its investors.^[5] The recent market reaction shows that while Meta aims to lead in AI, investors are closely watching the balance between ambitious long-term vision and immediate financial returns. The substantial capital expenditure, or CAPEX, has become a critical point of contention for Wall Street.

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