Mark Zuckerberg Loses $18 Billion as Meta Stock Plunges Over AI Spending

Meta Stock Plunge Triggers Massive Wealth Loss for Mark Zuckerberg

Mark Zuckerberg’s net worth declined by nearly $18 billion on Thursday as Meta Platforms paced an 11-day losing streak, with Wall Street pushing back hard against the company’s accelerating artificial intelligence investments. Shares of the social media giant plunged 9% by Thursday afternoon, marking what would be the stock’s worst single-day loss of the year so far and extending a 21.7% slide over the last 11 trading sessions.

The sharp pullback sliced $17.8 billion from Zuckerberg’s personal wealth, bringing his total net worth to $183.3 billion. That valuation places him as the sixth-richest person in the world, sitting directly ahead of Nvidia’s Jensen Huang at $167.2 billion and behind Michael Dell at $228.9 billion, according to financial trackers.

This sudden market reversal contrasts sharply with a remarkable mid-July rally. Earlier in the month, Meta stock rebounded strongly, soaring as high as $686 per share intraday before settling near levels last seen in April. That earlier surge had temporarily propelled Zuckerberg into the fifth spot among the world’s wealthiest individuals with an estimated fortune of $222 billion, fueled by optimism around potential computing capacity deals.

Wall Street Sours on Spiraling AI Capital Expenditures

The core friction point between Meta and institutional investors centers on capital allocation. The company raised its spending forecast for the year to $137.5 billion while declining to commit to a firm spending estimate for 2027.

Market analysts have grown increasingly skeptical about how quickly those massive infrastructure investments will yield financial returns. Scotiabank analyst Nat Schindler cut his stock price target for Meta to $600 from what it had been previously. He warned investors that until the firm can prove it can deliver on AI revenue, Meta should focus on free cash flow durability rather than the sheer size of its artificial intelligence ambitions.

Wedbush Securities also trimmed its price target to $595 from $671, arguing that investors should scrutinize whether Meta’s spending will actually generate profits. Those downward revisions joined similar cuts from major financial institutions, including Evercore ISI, Wolfe Research, Goldman Sachs, and Cantor Fitzgerald.

Financial metrics underscored the earnings pressure. Meta reported quarterly earnings of $6.18 per share, falling well below consensus analyst estimates of $7.18 according to FactSet data, even though total quarterly revenue topped projections at $60.8 billion.

Diverging Fortunes Across the Tech Sector’s AI Buildout

While Meta faced mounting skepticism over monetizing its artificial intelligence strategy, competitors demonstrated contrasting momentum on Thursday. Microsoft shares soared 15% following a robust earnings report showing its AI work assistant, Microsoft 365 Copilot, reached more than 30 million paid users, up from 20 million in April.

Forrester analyst Tracy Woo highlighted that Microsoft’s quarterly revenue of $90 billion—topping estimates of $87.6 billion—alongside the commercial success of Copilot, signaled that the firm’s data center buildout was beginning to deliver returns. By contrast, BMO analyst Brian Pitz recently labeled Meta as the least visible AI ROI story in the current market landscape.

To navigate these revenue visibility concerns, market reports earlier in June indicated that Meta explored pivoting toward cloud computing by selling its excess data center computing capacity to other AI firms rather than relying solely on proprietary consumer applications. Rumors surfaced regarding preliminary talks to lease computing power, which market watchers suggested could generate substantial annual revenue if formalized into contracts.

Long-Term Horizon and Investor Sentiment

Broader context highlights a volatile year for the tech giant. Meta has dropped roughly 18% over the course of the year amid regulatory hurdles and ongoing scrutiny surrounding its aggressive infrastructure spending.

The company has previously acknowledged that its multi-billion-dollar investments in advanced technology will take time to mature.

With majority voting power securely in his hands, Zuckerberg retains total control over the company’s strategic direction. Whether Wall Street’s recent punishment forces a recalibration of capital expenditure or whether long-term infrastructure bets ultimately pay off remains the defining question for Meta’s financial trajectory.