ZINGER KEY POINTS
Elon Musk's net worth skyrockets to $468 billion amid stock surge following Trump's election victory.
Luxury takes a hit as tech triumphs, spotlighting the widening fortunes between sectors in the billionaire club.
The year 2024 marked a significant increase in the net worth of the world’s wealthiest individuals, particularly those in the tech sector.
What Happened: 2024 wasn’t a year of financial prosperity for all, with some billionaires in the luxury retail sector experiencing substantial losses. A recent report revealed that the S&P 500 and Nasdaq experienced growth of 25% and 33% respectively in 2024.
This growth significantly benefited the ultra-wealthy, especially those with investments in tech companies.
According to the Bloomberg Billionaires Index, the collective net worth of the five wealthiest individuals in the tech sector surged by $542 billion. The rise in AI technology and a post-election rally pushed many tech stocks to record highs.
One of the major winners was Elon Musk, whose net worth almost doubled to $468 billion, primarily due to the stock market rally following Donald Trump’s election victory. Musk’s wealth mainly comes from his stakes in Tesla Inc. and SpaceX.
Mark Zuckerberg, CEO of Meta Platforms Inc saw an $85 billion increase in his net worth, thanks to a strong ad business and AI advancements, pushing the company's stock up over 70%. Similarly, Jensen Huang of Nvidia Corp. became a centibillionaire, gaining $78 billion as the company maintained its dominance in AI chips.
Other winners included Larry Ellison of Oracle Corp., whose wealth grew by $70 billion, and Jeff Bezos, Amazon's founder, who saw a $69 billion increase as Amazon's stock rose 45% following Trump's election win.
Also Read: Self-Made Millionaire Gives Gen Z Advice On Building Wealth: ‘Don’t Try To Be 40 Before You Are 40’
On the other hand, not all billionaires had a prosperous year. Those with investments in luxury retail saw their fortunes decline significantly due to the struggles faced by the sector in 2024.
Billionaires tied to luxury goods and retail experienced significant losses. Bernard Arnault of LVMH lost $31 billion amid struggles in China's economy, while Françoise Bettencourt Meyers of L'Oréal and Francois Pinault of Kering faced losses of $25 billion and $14 billion, respectively, due to a global luxury slowdown. Carlos Slim and Colin Huang also faced sharp declines, with losses tied to telecommunications and fast fashion industries.
Why It Matters: The tech sector’s performance in 2024 underscores the growing influence and wealth of tech billionaires. The significant growth in the S&P 500 and Nasdaq, coupled with advancements in AI technology, created a favorable environment for tech stocks. This, in turn, led to a substantial increase in the net worth of tech billionaires.
However, the luxury retail sector’s struggles highlight the economic disparities among billionaires. While tech billionaires saw their wealth increase, those invested in luxury retail faced significant losses.
This divergence in fortunes underscores the varying impacts of market trends on different sectors and the billionaires invested in them.
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