In just over three weeks, the index has shed over $2 trillion in value.
New Delhi: World’s 500 richest people, including Amazon founder Jeff Bezos and Tesla CEO Elon Musk on Friday lost $134 billion from their fortune, reports Bloomberg. According to the reports, Jeff Bezos’ net worth declined by $15.2 billion in his third-worst single-day wipeout while Elon Musk and Oracle’s Larry Ellison lost $6.6 billion and $4.4 billion respectively. Numerous stocks declined during a widespread market sell-off, amid uncertainty regarding potential rate cuts and disappointing corporate earnings.
How Did World’s Wealthiest Individuals Lose Massive Net Worth
Jeff Bezos and Elon Musk form the highest rung of the world’s wealthiest individuals and they have experienced a significant decrease in their net worth due to a widespread stock market sell-off.
The combined wealth of the world’s 500 wealthiest individuals plummeted by an astonishing $134 billion on Friday, according to the Bloomberg Billionaires Index.
Jeff Bezos experienced a significant loss, with his fortune decreasing by $15.2 billion, which represents his third most substantial financial loss to date. His net worth now stands at $191.5 billion, following an 8.8% decline in Amazon shares on Friday, the steepest drop since April 2022.
What Caused The Decline
The downturn was initiated by Amazon’s declaration of its sustained substantial investments in artificial intelligence (AI), despite the possibility of affecting short-term profits. This announcement raised concerns among investors regarding the overvaluation of the gains driven by AI this year and the risk of market concentration.
The NASDAQ 100 Index, which is significantly influenced by tech stocks, also experienced a 2.4% drop. This affected tech magnates such as Musk and Oracle’s Larry Ellison, whose net worths diminished by $6.6 billion and $4.4 billion, respectively, due to the market’s uncertainty about potential Federal Reserve rate cuts and lackluster earnings reports from notable companies.
In just over three weeks, the index has shed over $2 trillion in value, sending it into correction territory.
Tech Giants Lose $68 Billion
Tech magnates such as Mark Zuckerberg, Sergey Brin, and Larry Page were not immune to the stock market slump, each losing over $3 billion on Friday as shares of Meta Platforms Inc. and Alphabet plummeted in New York trading. Overall, the wealth of tech moguls shrank by $68 billion, as reported by Bloomberg’s wealth index.