Net worths of Bill Gates, Jeff Bezos, Sergey Brin, and other tech billionaires dropped in 2022.

This year has been a pessimistic year for the economy, with high inflation and fears of a recession leading to a sharp drop in the stock market. Tech companies are being hit hardest. Netflix’s stock has fallen more than 60% so far this year. Meta’s is down about 58%. Both Amazon and Google stocks are down about 30% year-to-date in 2022, according to Google Finance.

Billionaire leaders in the industry are also seeing personal fortune losses as technology stocks plummet. This is his one of the highlights on his Forbes 400 list this year. This is an annual report of the top 400 richest people in the United States. In total, the tech billionaire has lost $315 billion since last year.

But while the turmoil facing technology companies today is very real, technology leaders are doing well. The majority of people are still wealthier than they were before the pandemic, when wealth reached unprecedented heights.

According to Forbes, Amazon founder Jeff Bezos will lose $50 billion in 2022, leaving him with a net worth of about $151 billion. Still, he’s 32% wealthier than he was in 2019, when he had a net worth of $115 billion. Microsoft founder Bill Gates lost his $28 billion, but is almost as wealthy as he was pre-pandemic, with his net worth of $106 billion. Google founder Sergey Brin is about $35.5 billion richer than he was in 2019.

Forbes’ methodology classifies some tech-adjacent billionaires into a separate category. For example, for Elon Musk, his CEO of Tesla and SpaceX, it is ‘automobiles’, and for Meta founder Mark Zuckerberg, it is ‘media and entertainment’. But his 65 billionaires in the Forbes 400 are classified as technology. Oracle founder Larry Ellison, Google founders Larry Page and Sergey Brin, Twitter founder Jack Dorsey and former Microsoft CEO Steve Ballmer, among others, 56 of whom are wealthier than them. . Despite the current recession, there was in 2019.

“On the one hand, $315 billion is a lot,” said Chase Peterson-Withorn, deputy editor of Forbes’ wealth team, who compiles and edits the Forbes 400 list. “But they’re all fine. These are very wealthy people.”

“Technology leaders probably swing more on a dollar basis than most people,” he continued, because they have huge wealth.

A billionaire’s net worth can fluctuate considerably over the course of a day, and estimates also depend on how wealth is measured (Bloomberg, for example, has its own Billionaires Index). Forbes 400 captures a snapshot of someone’s wealth on a particular day. For the 2022 list, Forbes compared September 3, 2021 with September 2, 2022.

The biggest exception to tech billionaire pandemic profits is Zuckerberg, who lost about $77 billion last year and is now worth $57.7 billion compared to $69.6 billion in 2019, down about 17%. I’m here. Dustin Moskovitz, who co-founded Facebook with Zuckerberg, also saw his fortune fall from $11.6 billion in 2019 to $8.1 billion in 2022.

Zoom founder Eric Yuan also suffered losses as more employees returned to the office and reduced reliance on virtual meetings. But it’s not a catastrophic long-term loss, especially given how much Zoom’s value has fallen: From a peak price of $588.84 per share in October 2020, it’s currently trading around $75. Forbes doesn’t have data on Yuan’s wealth for 2019, but on Sept. 2 of that year, the Bloomberg Billionaires Index estimated his wealth to be around $4.78 billion. According to Forbes 400, Mr. Yuan’s 2022 net worth is his $3.9 billion.

For the most part, tech billionaires have increased their fortunes in the last three years. The best example of the pandemic tech boom is Elon Musk. By the end of 2020, amid the Covid-19 lockdown and business turmoil, Musk’s net worth surged by a whopping 242% year-over-year.

“He was the first person to track more than $300 billion in assets,” said Peterson-Withorn.

Musk is currently embroiled in a legal battle with Twitter after dropping its acquisition. It went to trial in October and could cost him a lot of money, especially if the court rules that Musk has to comply. Still less than the $48 billion he earned during 2020.

“We’ve seen astronomical gains during the pandemic,” said Chuck Collins, director of the Policy Institute’s program on inequality and common good. It can be seen as a smaller adjustment given the sharp increase in

In fact, some tech billionaires are getting richer despite donating billions of dollars. The ultra-rich are donating more dollars than ever before, but their wealth is still piling up. Mackenzie Scott has donated over $12 billion since his 2019. That included his whopping $275 million donation to Planned Parenthood this year, which was the largest single donation in the organization’s history. But even if her main source of wealth, Amazon stock, loses about 30% of its value in 2022, she’s still wealthier than she was in 2019. Having donated $15 billion, Gates recently donated another $20 billion.

All of this speaks to the tremendous growth that technology has enjoyed over the last few years. Some financial analysts had predicted this growth to be unsustainable, believing the stock was overvalued.

“[People] Think of the past as representing the future and confuse past performance with future investment quality,” Avanidhar Subrahmanyam, a professor of finance at UCLA’s Anderson School of Management, told Recode in an email. rice field. “It’s counterproductive. Anything with broken past performance is more likely to be overvalued.”

“I agree that some stocks are unsustainably overvalued because of this bias,” he said.

Workers are bearing the brunt of the tech downturn, with at least 40,000 workers laid off in the sector this year. But for big tech leaders and investors, this downturn is a tiny fraction of what they’ve racked up during the pandemic.

“Their wealth seems to have been supercharged by the pandemic situation,” Collins told Recode. We are starting to understand how disconnected we are from.” According to an Oxfam report released earlier this year, the world’s billionaires will get richer by $5 trillion between March 2020 and March 2021. became.

Even with setbacks, billionaires seem to have the upper hand in the long run. That is the scale and gravitational pull of their wealth and power. This guy may look like he lost a lot of money in a year. Or, to put it another way, maybe you’re just not making as much profit as you wanted in your dreams.

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