Mark Zuckerberg passed Elon Musk on Friday to become the third-richest person in the world, the first time since 2020 the arch-rival billionaires have held those positions.
Mr Musk, who ranked first on the Bloomberg Billionaires Index as recently as early March, fell to fourth after Reuters reported Tesla had cancelled plans for a less-expensive car, sending shares tumbling. Mr Musk denied the report.
That followed news earlier in the week that Tesla’s vehicle deliveries fell in the three months through to March, their first year-over-year decline since the early days of the Covid pandemic.
Mr Musk’s wealth has shrunk by $48.4 billion this year, while Mr Zuckerberg has added $58.9 billion to his fortune as Meta Platforms climbs to fresh highs, including a record on Friday.
It’s the first time Mr Zuckerberg has broken into the top three on Bloomberg’s ranking of the richest people since November 16, 2020, when he was worth $105.6 billion and Mr Musk’s fortune was $102.1 billion.
Top 10 richest people in the world 2024 – in pictures
Mr Musk now has a net worth of $180.6 billion; Mr Zuckerberg’s is $186.9 billion.
The reversal of the wealth gap between the two billionaires, which was as big as $215 billion in November 2021, illustrates how once-hot electric vehicle stocks have been usurped by Big Tech, and particularly anything involving artificial intelligence.
Tesla shares have fallen 34 per cent this year, making it the worst performer on the S&P 500 Index.
It’s been battered by a global slowdown in EV demand, growing competition in China and production problems in Germany. Meta, meanwhile, has surged 49 per cent thanks to strong quarterly earnings and excitement about the company’s AI initiatives. It’s the fifth-best performer on the S&P 500.
The two billionaires’ rivalry extends beyond their wealth: Mr Musk and Mr Zuckerberg have been engaged in an continuing public spat that intensified when Meta launched Threads, a social-media platform that competes with X, formerly known as Twitter.
The two even traded barbs last year about a possible cage fight. Mr Musk, 52, recently revived the idea on X, saying he would fight Mr Zuckerberg, 39, “anywhere, anytime”.
Mr Musk’s net worth could take a further hit after his $55 billion Tesla pay package was struck down by a Delaware judge.
The Bloomberg Billionaires Index continues to use the options from that pay package, which are one of Mr Musk’s largest assets, in its calculations of his wealth.
Bernard Arnault, chairman of luxury giant LVMH Moet Hennessy Louis Vuitton, and Amazon founder Jeff Bezos hold the first two spots on Bloomberg’s wealth ranking with fortunes of $223 billion and $207 billion, respectively.
Donald Trump
The value of Donald Trump’s stake in his social media business has tumbled by nearly $2 billion since the company disclosed that it lost more than $58 million in 2023, as revenue for the former president’s Truth Social platform trickled in.
Trump Media & Technology Group’s stock fell 21 per cent last Monday to $48.66 per share, below the $49.95 level where the blank-check vehicle it merged with was trading a week ago.
On Friday, the company, which listed on the Nasdaq on March 26, fell another 12 per cent to close out the trading week at $40.59.
Mr Trump’s current net worth is estimated at $5.1 billion, down from a peak of $7.81 billion on March 28, according to the Bloomberg Billionaires Index.
The former US president owns 57 per cent of the company, according to the filings with the US Securities and Exchange Commission, with his stake now worth about $3.2 billion on paper.
The company generated $4.1 million in revenue for the full year, results reported in a filing on April 1 show, underscoring how richly valued Trump Media is relative to its peers.
The company doesn’t report active user numbers, disclosing in its prospectus in February that Truth Social has about nine million sign-ups across its platforms.
Trump Media has still delivered a meteoric gain of 132.6 per cent this year to date, with its market value sitting at about $5.55 billion after it became a meme stock and captivated retail traders.
Reddit – which went public last month and has a similar valuation – had 267.5 million weekly active users in the last quarter and delivered $804 million in revenue last year.
Meanwhile, Snap, which has a market value of $19 billion, had a net loss of $1.3 billion on $4.6 billion in sales last year. Snap estimated daily active users for the first quarter of about 420 million.
The discrepancy between where Trump Media’s shares trade and how the underlying business performs indicates that some investors use it to signal they support Mr Trump’s push for re-election.
The stock, which has been trading since 2021 under the Spac’s ticker, has more than tripled this year as the retail-trading crowd pumps it with posts across Stocktwits and Reddit’s WallStreetBets forum.
In the filing, Trump Media’s revenue inched higher from $1.47 million in 2022 as it swung to an annual loss. The company recorded a $50.5 million profit in 2022 after receiving a boost from a change in the value related to its convertible notes.
Mr Trump can’t sell the stake immediately due to a six-month lock-up agreement, hindering his ability to monetise the shares and ease his present cash crunch.
His media company debuted on the Nasdaq after the closing of the merger with Digital World Acquisition brought in more than $275 million of much-needed cash. The media start-up had warned that without the deal there were concerns it could go bankrupt.
The heightened valuation has made it costly and risky to bet against, with short sellers facing annual financing costs of 500 per cent to borrow, according to brokers.
That makes it the most expensive US company to bet against with more than $100 million of short interest by a large margin, data from financial analytics firm S3 Partners show.
Companies that go public via Spac have historically been volatile in the days around the merger completion despite little fundamental change.
Prices of some stocks, including VinFast Auto, surged as the small amount available for trading made it easy for traders to drive share prices to extremes, before ultimately cratering.
More than one fifth of the nearly 500 Spac deals that have closed since 2019 are trading below $1 each, a greater than 90 per cent decline.
Steve Cohen
Billionaire Steve Cohen said he expects more businesses will move to a four-day work week – one of the reasons he’s made investments in golf.
“My belief is that a four-day work week is coming,” Mr Cohen, the founder of Point72 Asset Management and owner of the New York Mets, said in an interview with CNBC. “That fits into a theme of more leisure for people.”
Mr Cohen, an avid golfer, said several forces were pushing the world towards fewer work days, including the rise of artificial intelligence. More companies allowing hybrid working means “people are not as productive on Fridays”, he said.
Mr Cohen is part of a consortium that recently agreed to invest up to $3 billion in an entity controlled by golf's PGA Tour.
The deal, with a string of investors including the billionaire Marc Lasry and the Milwaukee Brewers owner Mark Attanasio, is a new commercial venture that will give some players an equity stake. Saudi Arabia’s Public Investment Fund is in continuing discussions over potential investment.
Mr Cohen is also a team owner in a new simulator-based golf league funded by Tiger Woods and Rory McIlroy.
However, Mr Cohen said he’d keep his own traders and portfolio managers working five days a week. “Taking off Friday when you have a portfolio – that would be a problem,” he said.
Jeff Bezos
Jeff Bezos is expanding his property empire with a third mansion on South Florida’s exclusive Indian Creek Island.
The Amazon founder agreed to pay about $90 million in an off-market transaction for a six-bedroom home in the Miami-area enclave, according to sources with knowledge of the matter.
Mr Bezos plans to live there while he tears down the other houses he bought on the island, said one of the sources.
A representative for Mr Bezos declined to comment. Property records show the house was last sold in 1998 for $2.5 million.
Mr Bezos, the world’s second-richest person with a net worth of $207 billion, according to the Bloomberg Billionaires Index, in November said he was moving to Miami from the Seattle region.
He shelled out $147 million for two mansions in Indian Creek, a man-made barrier island so renowned for its wealth that it’s dubbed “Billionaire Bunker”. Residents include Jared Kushner and Ivanka Trump, Tom Brady and Carl Icahn.
Since February, Mr Bezos has sold Amazon shares worth about $8.5 billion after having not disposed from the company stock since 2021. Mr Bezos, 60, hasn’t disclosed plans for the proceeds.
His property holdings include homes in Washington, a Maui estate and a Beverly Hills mansion he bought for $165 million in 2020.
HOW DO SIM CARD SCAMS WORK?
Sim swap frauds are a form of identity theft.
They involve criminals conning mobile phone operators into issuing them with replacement Sim cards, often by claiming their phone has been lost or stolen
They use the victim's personal details - obtained through criminal methods - to convince such companies of their identity.
The criminal can then access any online service that requires security codes to be sent to a user's mobile phone, such as banking services.
How Tesla’s price correction has hit fund managers
Investing in disruptive technology can be a bumpy ride, as investors in Tesla were reminded on Friday, when its stock dropped 7.5 per cent in early trading to $575.
It recovered slightly but still ended the week 15 per cent lower and is down a third from its all-time high of $883 on January 26. The electric car maker’s market cap fell from $834 billion to about $567bn in that time, a drop of an astonishing $267bn, and a blow for those who bought Tesla stock late.
The collapse also hit fund managers that have gone big on Tesla, notably the UK-based Scottish Mortgage Investment Trust and Cathie Wood’s ARK Innovation ETF.
Tesla is the top holding in both funds, making up a hefty 10 per cent of total assets under management. Both funds have fallen by a quarter in the past month.
Matt Weller, global head of market research at GAIN Capital, recently warned that Tesla founder Elon Musk had “flown a bit too close to the sun”, after getting carried away by investing $1.5bn of the company’s money in Bitcoin.
He also predicted Tesla’s sales could struggle as traditional auto manufacturers ramp up electric car production, destroying its first mover advantage.
AJ Bell’s Russ Mould warns that many investors buy tech stocks when earnings forecasts are rising, almost regardless of valuation. “When it works, it really works. But when it goes wrong, elevated valuations leave little or no downside protection.”
A Tesla correction was probably baked in after last year’s astonishing share price surge, and many investors will see this as an opportunity to load up at a reduced price.
Dramatic swings are to be expected when investing in disruptive technology, as Ms Wood at ARK makes clear.
Every week, she sends subscribers a commentary listing “stocks in our strategies that have appreciated or dropped more than 15 per cent in a day” during the week.
Her latest commentary, issued on Friday, showed seven stocks displaying extreme volatility, led by ExOne, a leader in binder jetting 3D printing technology. It jumped 24 per cent, boosted by news that fellow 3D printing specialist Stratasys had beaten fourth-quarter revenues and earnings expectations, seen as good news for the sector.
By contrast, computational drug and material discovery company Schrödinger fell 27 per cent after quarterly and full-year results showed its core software sales and drug development pipeline slowing.
Despite that setback, Ms Wood remains positive, arguing that its “medicinal chemistry platform offers a powerful and unique view into chemical space”.
In her weekly video view, she remains bullish, stating that: “We are on the right side of change, and disruptive innovation is going to deliver exponential growth trajectories for many of our companies, in fact, most of them.”
Ms Wood remains committed to Tesla as she expects global electric car sales to compound at an average annual rate of 82 per cent for the next five years.
She said these are so “enormous that some people find them unbelievable”, and argues that this scepticism, especially among institutional investors, “festers” and creates a great opportunity for ARK.
Only you can decide whether you are a believer or a festering sceptic. If it’s the former, then buckle up.
Teri%20Baaton%20Mein%20Aisa%20Uljha%20Jiya
%3Cp%3E%3Cstrong%3EDirectors%3A%3C%2Fstrong%3E%20Amit%20Joshi%20and%20Aradhana%20Sah%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ECast%3A%3C%2Fstrong%3E%20Shahid%20Kapoor%2C%20Kriti%20Sanon%2C%20Dharmendra%2C%20Dimple%20Kapadia%2C%20Rakesh%20Bedi%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3EName%3A%3C%2Fstrong%3E%20Floward%0D%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3ERiyadh%2C%20Saudi%20Arabia%0D%3Cbr%3E%3Cstrong%3EFounders%3A%20%3C%2Fstrong%3EAbdulaziz%20Al%20Loughani%20and%20Mohamed%20Al%20Arifi%0D%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3EE-commerce%0D%3Cbr%3E%3Cstrong%3ETotal%20funding%3A%20%3C%2Fstrong%3EAbout%20%24200%20million%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3EAljazira%20Capital%2C%20Rainwater%20Partners%2C%20STV%20and%20Impact46%0D%3Cbr%3E%3Cstrong%3ENumber%20of%20employees%3A%20%3C%2Fstrong%3E1%2C200%3C%2Fp%3E%0A
What is blockchain?
Blockchain is a form of distributed ledger technology, a digital system in which data is recorded across multiple places at the same time. Unlike traditional databases, DLTs have no central administrator or centralised data storage. They are transparent because the data is visible and, because they are automatically replicated and impossible to be tampered with, they are secure.
The main difference between blockchain and other forms of DLT is the way data is stored as ‘blocks’ – new transactions are added to the existing ‘chain’ of past transactions, hence the name ‘blockchain’. It is impossible to delete or modify information on the chain due to the replication of blocks across various locations.
Blockchain is mostly associated with cryptocurrency Bitcoin. Due to the inability to tamper with transactions, advocates say this makes the currency more secure and safer than traditional systems. It is maintained by a network of people referred to as ‘miners’, who receive rewards for solving complex mathematical equations that enable transactions to go through.
However, one of the major problems that has come to light has been the presence of illicit material buried in the Bitcoin blockchain, linking it to the dark web.
Other blockchain platforms can offer things like smart contracts, which are automatically implemented when specific conditions from all interested parties are reached, cutting the time involved and the risk of mistakes. Another use could be storing medical records, as patients can be confident their information cannot be changed. The technology can also be used in supply chains, voting and has the potential to used for storing property records.
Brief scores:
Barcelona 3
Pique 38', Messi 51 (pen), Suarez 82'
Rayo Vallecano 1
De Tomas Gomez 24'
Other acts on the Jazz Garden bill
Sharrie Williams
The American singer is hugely respected in blues circles due to her passionate vocals and songwriting. Born and raised in Michigan, Williams began recording and touring as a teenage gospel singer. Her career took off with the blues band The Wiseguys. Such was the acclaim of their live shows that they toured throughout Europe and in Africa. As a solo artist, Williams has also collaborated with the likes of the late Dizzy Gillespie, Van Morrison and Mavis Staples.
Lin Rountree
An accomplished smooth jazz artist who blends his chilled approach with R‘n’B. Trained at the Duke Ellington School of the Arts in Washington, DC, Rountree formed his own band in 2004. He has also recorded with the likes of Kem, Dwele and Conya Doss. He comes to Dubai on the back of his new single Pass The Groove, from his forthcoming 2018 album Stronger Still, which may follow his five previous solo albums in cracking the top 10 of the US jazz charts.
Anita Williams
Dubai-based singer Anita Williams will open the night with a set of covers and swing, jazz and blues standards that made her an in-demand singer across the emirate. The Irish singer has been performing in Dubai since 2008 at venues such as MusicHall and Voda Bar. Her Jazz Garden appearance is career highlight as she will use the event to perform the original song Big Blue Eyes, the single from her debut solo album, due for release soon.
Our legal columnist
Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
Electric scooters: some rules to remember
- Riders must be 14-years-old or over
- Wear a protective helmet
- Park the electric scooter in designated parking lots (if any)
- Do not leave electric scooter in locations that obstruct traffic or pedestrians
- Solo riders only, no passengers allowed
- Do not drive outside designated lanes
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3ECompany%20name%3A%3C%2Fstrong%3E%20Co%20Chocolat%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202017%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Iman%20and%20Luchie%20Suguitan%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%2C%20UAE%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20Food%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EFunding%3A%3C%2Fstrong%3E%20%241%20million-plus%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Fahad%20bin%20Juma%2C%20self-funding%2C%20family%20and%20friends%3C%2Fp%3E%0A
