Meta founder Mark Zuckerberg recently overtook Oracle co-founder Larry Ellison to claim the title of the third-wealthiest person globally, according to Forbes’ Real-Time Billionaire List. This shift came after Zuckerberg's net worth experienced a significant spike following positive market performance for Meta Platforms, Inc.
On Monday, January 3, 2023, Meta's shares closed 4% higher at $630.20, contributing to Zuckerberg's net worth soaring to $217.7 billion. This increase placed him above Ellison, whose net worth dipped 0.3% to $209 billion. The financial back-and-forth between these tech giants signals the volatile nature of the stock market, where fortunes can shift dramatically from day to day.
Previously, Ellison had been worth more than $228 billion as of November 2022, even briefly competing with Jeff Bezos for the second richest spot. His fortune took a notable hit early last month, dropping by $15 billion after Oracle posted disappointing earnings, with the stock reflecting this downturn. Ellison, who holds roughly 40% ownership of Oracle, serves as the company's chairman and chief technology officer.
For Zuckerberg's part, his wealth is supported by about 13% ownership of Meta's shares, where he serves as chief executive and chairman. The growth of his net worth and Meta’s stock follows months of investor sentiment favoring the tech sector, particularly after Donald Trump's election victory, which saw tech executives, including Zuckerberg and Ellison, enjoying significant wealth increases.
Interestingly, both billionaires have substantially invested their fortunes in real estate. Zuckerberg, for example, has accumulated over ten properties, including vast estates across Hawaii and upscale residences in Silicon Valley and Lake Tahoe. Ellison’s portfolio is even more expansive, featuring investments like nearly all of Lanai, one of Hawaii’s islands, along with numerous residences spread across California.
On the same day Zuckerberg was confirmed as the third-wealthiest, he disclosed the sale of 35,921 shares of Meta, at an average price of $603.98, netting over $21.6 million. This was part of several recent stock transactions; just days prior, on December 27, 2022, he sold 2,311 shares for over $1.3 million, and on December 20, he sold others for almost $6.1 million. Throughout December, he engaged in numerous high-value stock transactions totaling around $115 million.
According to SEC filings, these stock sales are part of Zuckerberg's planned divestments, and it appears he is managing his portfolio proactively amid fluctuated market conditions. Despite the substantial sales, Zuckerberg continues to maintain a sizeable shareholding, leveraging the fluctuations to capitalize on market movements.
Meta's stock, responding to positive earnings reports, has seen its market value rise significantly. Analysts have rated Meta as holding moderate buy positions. Following strong quarterly earnings results, which showed $40.59 billion revenue and earnings per share of $6.03, expectations seem optimistic for the company, with analysts projecting significant continued growth and healthy price targets. For example, Raymond James recently placed their price target for Meta shares at $675.00.
Meanwhile, institutional investors appear bullish on Meta, with ownership currently at 79.91% among large stakeholders. Significant players like Geode Capital Management and Jennison Associates have recently increased their stakes, reflecting confidence in the company's performance and outlook.
Beyond these financial maneuvers, Zuckerberg announced notable changes to his company’s governance. On the same day as his stock sale, he welcomed UFC president Dana White along with other industry leaders to Meta's board of directors. This strategic move reflects Zuckerberg's vision for enhancing potential growth avenues, particularly focusing on advancements within artificial intelligence, wearables, and social media innovation.
The recalibrated board composition is indicative of Zuckerberg’s intention to tap the expertise of diverse sectors as he navigates through the intense competitive climate facing tech companies. With so many variables at play—from stock performance to governance shifts—Zuckerberg's recent rise reflects not only his personal ambition but also the broader shifts within the technology industry as it grapples with new challenges and opportunities.