Tech mogul Mark Zuckerberg has officially become the world’s fourth-richest person, boasting a net worth of $201 billion, following Facebook’s rebranding to Meta in October 2021 and its expansion into metaverse hardware and artificial intelligence (AI). According to Bloomberg, as of September 2024, Zuckerberg trails only behind Elon Musk, Amazon founder Jeff Bezos, and French businessman Bernard Arnault.
Meta’s stock is now trading at approximately $567 per share—a dramatic rise from its November 2022 low of $88 per share. This significant rebound follows a period of sharp decline after Meta’s rebrand, during which investor sentiment towards the company’s pivot to augmented reality and AI led to a drop from the $300 range.
Meta’s Expansion into AI and Metaverse
Despite initial skepticism, Zuckerberg’s long-term strategy is paying off as half of the world’s top 10 most valuable companies, including Apple, Google, Nvidia, and Microsoft, have since joined the race to develop metaverse hardware.
On Sept. 25, at the Meta Connect event in California, Zuckerberg unveiled two major products: the Orion augmented reality glasses and the affordable Quest 3S virtual reality headset. The Orion glasses feature small projectors that overlay virtual information onto real-world objects, while the Quest 3S is set to replace the earlier Quest 3 128 GB model, providing a cheaper, more accessible option for consumers.
Reality Labs and Financial Challenges
Though Meta’s stock has skyrocketed, the company’s metaverse division, Reality Labs, has faced ongoing financial challenges. Since 2019, the division has lost $60 billion, with significant losses reported in the second quarter of 2024. In response, Meta reduced its metaverse budget by 20% in July 2024 and instructed Reality Labs to cut departmental expenses by 20% by 2026. This shift is likely driven by Meta’s increased focus on AI applications.
A Strategic Shift to AI
Zuckerberg has signaled a strategic narrowing of focus, with an emphasis on growing Meta’s AI business. By ramping up capital investment in AI research, Meta aims to transform its product offerings and become a major player in the AI space.
