The wealth of five of the world’s most prominent tech billionaires, including Elon Musk and Jeff Bezos, collectively fell by $32.7bn in a single day as a broad market sell-off wiped out significant portions of their fortunes.
The sharp decline followed the release of a disappointing U.S. employment report, raising fresh concerns about the strength of the economy.
Elon Musk, founder of Tesla, was the hardest hit, seeing his net worth tumble by $10.7bn after Tesla shares fell 8.45% in Friday’s trading, Forbes data showed.
The electric carmaker’s stock has been under pressure in recent weeks amid broader market volatility and concerns over the impact of rising interest rates on tech valuations.
Jeff Bezos, founder of Amazon, recorded a $6bn reduction in his wealth, with Amazon shares falling over 3%. The e-commerce giant has seen its stock slide in response to concerns about weakening consumer demand and macroeconomic pressures.
Mark Zuckerberg, CEO of Meta Platforms, also saw a significant drop in his net worth, losing $5.7bn as Meta’s stock dropped more than 3%.
The social media giant has faced its own set of challenges, with advertisers pulling back in the face of economic uncertainty and heightened regulatory scrutiny.
Michael Dell, founder of Dell Technologies, and Alphabet co-founder Larry Page each lost $5.1bn and $5bn respectively. Alphabet’s stock declined by 4.1%, part of a broader tech sector retreat.
Some context
The losses come as part of a broader sell-off across the technology sector and the wider stock market, which marked its worst week of 2024.
The declines were spurred by the U.S. Department of Labor’s August employment report, which showed the economy added 142,000 jobs—significantly below economists’ expectations of 160,000.
Furthermore, revisions to previous data revealed that 86,000 fewer jobs were created in June and July than initially reported, further dampening sentiment.
The disappointing jobs report stoked fears that the U.S. economy may be faltering, despite expectations that it had weathered the worst of the economic storm. Investors reacted by selling off equities, with technology stocks bearing the brunt of the decline.
The Dow Jones Industrial Average fell 1%, or approximately 400 points, while the S&P 500 lost 1.7% and the tech-heavy Nasdaq plunged 2.6%.
More insights
- Alongside the declines in Tesla, Amazon, Meta, and Alphabet, other major tech firms also saw their stocks fall. Apple and Microsoft both ended the day lower, reflecting broader uncertainty about the future growth prospects of the sector.
- This sharp decline in market values shows the vulnerability of the tech sector to shifts in economic sentiment and interest rate expectations.
- For the world’s tech titans, Friday’s sell-off marked a sobering reminder of how quickly fortunes can shift in an increasingly volatile market environment.