In 2023, two of the world’s richest tech giants started talking about fighting. It didn’t amount to a physical blow, but that doesn’t mean there wasn’t a clear winner.
Elon Musk got punched in the face and couldn’t even fight.
It all goes back to June of last year, when Tesla’s president said this. He will be in a “cage match”.
Mark Zuckerberg responded by claiming he would be there as soon as he knew where it was.
The battle, which at one point looked like it might actually happen, even had its own page on Wikipedia. I think I speak for all of us when I say we were looking forward to it.
But after a while, it became clear that Meta’s top executives were keen on a formal initiative with rules in place to raise money for charity. But Musk just wanted to rumble, perhaps in someone’s backyard.
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By the end of 2023, Zack seemed to be backtracking, saying that moment had passed. Since then, he has been fighting in the important field of business. And it was a knockout.
Let’s take a look at its performance over the past year. The CEO of Meta (formerly Facebook) told investors that he was worth $2 billion per day, almost tripling the company’s value. Meanwhile, Tesla’s CEO Fee His investors invested about $100 million a day as the value of his company fell by 5 percent.
The graph above sets both companies equally one year ago and compares the changes from that day using an index, so the value on the vertical axis is arbitrary.
But you can also see the actual market capitalization. That way you can compare pairs on a dollar basis.
Here, we’re talking about a short period of months since Musk proposed the cage match. As of June last year, Musk’s company was worth hundreds of billions of dollars more than Zuckerberg’s. But while Musk was lifting weights and practicing his “walrus” fight moves, Zack snuck up and punched Mask where it really hurt. Currently, Meta is worth twice as much as Tesla.
You might think Zack is now richer than Musk, since they both own about 13% of the company. But let’s not forget all the other pies the Tesla founder is involved in.
Musk is also the owner of SpaceX, Twitter, and several other small businesses. Forbes estimates that Mr. Musk is still wealthier than Mr. Zuckerberg, although the gap is narrowing.
turning point
Four things happened that caused Tesla to fall and meta to rise.
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Tesla’s new Cybertruck is not a blockbuster product. It’s rusty and expensive. The company has no new products planned for release, but Chinese competitors are crowding into the zone.
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Meta launched a Twitter clone called Threads and is eating Twitter’s lunch. In my opinion, this is a very good user experience. (I have accounts on both Twitter and Threads).
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Facebook has announced a dividend. American companies pay dividends less frequently than Australian companies due to fewer tax benefits. However, in January 2024, Zuckerberg announced that the company would pay a quarterly dividend of 50 cents per share. That’s a pretty low yield for a stock priced over $400. We charge $2 per year for each share you own. It’s like if you put money into Facebook’s bank he gets 0.5% interest. But it was enough to send stock prices soaring.
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Mr. Musk’s reputation has suffered. political views exposed And a big Wall Street Journal exposé revealed his drug intake (tranquilizers, hallucinogens, party drugs, etc.).
says the father of 10 who has gone through multiple divorces. None of his friends asked him to go to rehab. However.
It is said that those who burn brightest burn fastest. Mr. Musk’s rise into the business stratosphere has been extremely rapid and extremely glittering.
Will he burn out? we will see.
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