Mark Zuckerberg Becomes 4th Richest Man with $201B Net Worth

Mark Zuckerberg's journey into the metaverse has been far from smooth, but his once-controversial gamble is now yielding substantial returns.

His net worth has surged to $201 billion—nearly six times its previous value in under two years—driven largely by Meta Platforms Inc.'s remarkable stock price recovery, which has climbed about 60% this year.

Following Facebook's rebrand to Meta in 2021 and a shift into metaverse and AI technologies, the company's stock initially plummeted, dropping from the $300 range to a low of $88 in November 2022.

However, the stock has since rebounded, now trading around $567 per share, reflecting renewed confidence in Meta's strategic pivot.

As global tech giants like Apple, Google, Nvidia, and Microsoft ramp up their metaverse and AI efforts, Meta's growth signals its competitive strength in these evolving sectors.

Zuckerberg now ranks as the world's fourth-richest person, trailing only Elon Musk, Jeff Bezos, and Bernard Arnault.

Could this expansion into metaverse hardware and AI be fuelling Zuckerberg's meteoric rise?

Meta's Foray into Metaverse

At Meta's Connect event on 25 September, Zuckerberg introduced the Orion augmented reality glasses, featuring advanced projectors that create a virtual heads-up display over real-world objects.

He also unveiled the Quest 3S virtual reality headset, set to replace the Quest 3 128 GB model.

Despite Meta’s stock surge since its 2021 rebrand, the company cut its metaverse budget by 20% in July 2024 and directed its metaverse division, Reality Labs, to reduce costs by 20% by 2026.

Reality Labs has faced significant financial challenges, losing $60 billion since 2019 and posting additional losses in the second quarter of 2024.

While Zuckerberg champions the metaverse as the future of social interaction, scepticism persists.

Critics argue that Meta's focus on the metaverse has delivered more losses than benefits, with some suggesting that Zuckerberg's wealth is more tied to AI advancements than the metaverse concept itself.

In response to financial strain, Meta has initiated a $50 billion share buyback program and reduced its workforce by 25% to streamline operations.

Despite these challenges, Zuckerberg continues to advocate for blending the physical and virtual worlds, envisioning a future where people interact via holograms and avatars.

However, some shareholders and insiders are urging caution, questioning further investment in the metaverse, which they believe remains far from widespread adoption.

They argue that Zuckerberg should prioritise Meta’s core revenue drivers—Facebook, Instagram, and WhatsApp—rather than focusing on a vision that has yet to fully materialise.

Meta Grows its AI Business

Mark Zuckerberg has stated that Meta aims to expand its artificial intelligence (AI) initiatives by sharpening its focus and increasing investment in AI research.

He explained in a July 31 earings call:

“We’ve released the first frontier-level open-source AI model, and we continue to see good traction with our Ray-Ban Meta AI glasses."

As the company rolls out new products like the Quest 3 VR headset and Ray-Ban smart glasses, these innovations are expected to drive future revenue growth.

However, many investors remain sceptical, seeking quicker returns.

The company's long-term success will hinge on its ability to seamlessly integrate emerging technologies into its existing platforms and systems.