On Thursday, tech billionaires Elon Musk, Jeff Bezos, and Jensen Huang collectively lost $15 billion in net worth due to a significant downturn in tech stocks.
Tesla founder Elon Musk experienced the most substantial loss, with his net worth plummeting by $7.1 billion. This was primarily due to a 5.7% drop in Tesla’s share price, closing at $210 per share. The stock has declined 15.2% year-to-date, contributing to Musk’s losses.
Nvidia CEO Jensen Huang saw a decrease of $4.1 billion in his net worth, bringing it down to approximately $108.2 billion. Nvidia shares fell nearly 4% on Thursday. Despite this recent dip, Nvidia has had a strong year overall, with its stock gaining 156% year-to-date.
Amazon founder Jeff Bezos also faced a significant loss, with his net worth dropping by $3.7 billion as Amazon’s shares decreased by 2.21%. However, Amazon’s stock has still gained 17.4% since the beginning of the year.
What to know
Dubbed the “Magnificent Seven,” tech giants Apple, Microsoft, Alphabet (Google’s parent company), Amazon, Nvidia, Meta Platforms, and Tesla have been driving market gains in 2023. However, the third quarter of 2024 has seen a divergence in their performance, with recent sell-offs affecting their overall standing before a partial recovery.
Due to their substantial market capitalizations, the Magnificent Seven stocks wield significant influence on the Nasdaq Composite and S&P 500 indices, both of which are market-cap weighted.
Nvidia shares fell 3.7% on Thursday but remain above their key 50-day moving average. The company will report its earnings on August 28, and its stock has been strong this year, especially following an impressive earnings report and a 10-for-1 stock split in June. However, recent market fluctuations have erased some of these gains.
Amazon shares dropped 2.2% on Thursday but have regained their position above the 200-day moving average. The company recently reported mixed second-quarter results with earnings beating expectations, but revenue falling short. Despite this, Amazon continues to strengthen its cloud computing offerings through its Amazon Bedrock platform, which provides managed services using AI models from leading companies.
Tesla shares fell below their 50-day line on Thursday, dropping 5.7%. The electric vehicle giant reported mixed second-quarter results on July 23, with earnings falling over 40% but sales exceeding expectations.
Both Apple and Microsoft, part of the Dow Jones Industrial Average, have also seen declines. Apple’s stock fell 0.8% recently but remains above its 50-day moving average. Meanwhile, Microsoft’s shares dropped 2%, staying above the 200-day line despite disappointing cloud growth in its recent earnings report.
As tech stocks continue to fluctuate, investors are closely monitoring the market’s response to these significant movements.
