Before the bell: Mark Zuckerberg is 29 billion dollars poorer

Amazon and Apple also reported strong quarters and look to the future with confidence. Amazon’s shares, in particular, are set to soar today.

Markets can’t rise every single day, even when most corporate news is good. Investors had long anticipated a deal between Trump and Xi Jinping, so that good news was already priced in. And when good news is priced in, “sell the news” moments tend to follow—when investors take profits and prices slip. It’s an old phenomenon and a healthy one. The S&P 500 fell 1%, while the Nasdaq dropped 1.7%. If your portfolio has dipped a bit, think of Mark Zuckerberg. His own portfolio plunged by 29.2 billion dollars yesterday after Meta’s shares tumbled 11.3%. In the global rich list, the Meta founder now trails Larry Page (Alphabet) and Jeff Bezos (Amazon). That must sting for a competitive man, though Zuckerberg’s time will come again—just not today, as Jeff Bezos is rubbing salt in the wound. Amazon released stellar quarterly results last night. Apple’s figures were also solid, suggesting another modest rise today (+2.4%), and the company added that the current quarter should be equally strong. In Europe, markets barely moved, with a small average decline. Argenx (-2%) couldn’t turn good results into gains, and AB InBev’s shareholders weren’t impressed by its earnings either. UCB (+1%) was the strongest performer in the Bel20.

Tokyo’s stock exchange gained 0.9% this morning, while in Hong Kong, markets fell 1% on average. BYD (-3.9%) landed on the shoulder lane after a 33% profit drop, though shares recovered somewhat after an early 6.4% plunge. Alibaba (-2.8%) also got off to a weak start. X-Fab announced that CEO Rudi De Winter (64) will be succeeded by Damien Macq on February 6. The question now: will the new chief focus more on creating shareholder value? Syensqo reported the sale of its oil and gas division. Wereldhave Belgium published its results this morning, KBC Ancora holds its annual shareholders’ meeting, and Prosus cut a 0.2-euro dividend coupon. On Wall Street, AbbVie, Chevron and ExxonMobil are reporting results today.

Bezos vs. Zuckerberg: 1–0

If Amazon’s stock jumps as much at today’s Wall Street opening as the after-hours price suggests, the company will experience its best trading day in a decade. The star of the show was its cloud division, where revenue rose 20%—well above the already-high expectations of 18%. Investors are forgiving Amazon’s massive spending, especially in AI. Over the first three quarters, investments have already reached 89.9 billion dollars, with total spending for 2025 expected to hit 125 billion. Next year’s investments will rise even further, though no details were given. If there’s anyone in Menlo Park, California, who didn’t sleep well last night and woke up a little grumpy this morning, it’s Mark Zuckerberg. Meta also had a strong quarter, except for one extraordinary write-down. Like Amazon, it’s investing heavily in AI. But while Bezos is being put on a pedestal, Zuckerberg is being knocked off his. Since yesterday, Bezos is 11 billion dollars richer than Zuckerberg—and that gap is likely to widen today. That has to sting, but it will probably only make Zuckerberg more determined to prove himself in the months ahead. If I didn’t already own Meta shares, I’d take advantage of yesterday’s drop to pick some up today.

Are burritos losing their flavour?

It’s the third time Chipotle Mexican Grill has cut its full-year forecast. The U.S. fast-food chain now expects same-store sales to fall between 1% and 3%. Still, it’s not all bad news: revenue rose 7.5% year-on-year to 3 billion dollars in the third quarter, mainly thanks to new store openings. Investors fear the company’s growth engine is sputtering, and sent the stock down more than 18% yesterday—the biggest one-day drop in 13 years for the burrito, taco and quesadilla specialist.

Did you know…

McDonald’s once held a majority stake in Chipotle Mexican Grill for nearly a decade? The burger giant first took a small position in CMG in 1998, expanded it the following year, and helped fuel Chipotle’s early growth. In 2008, McDonald’s sold its shares—long before Chipotle became the fast-casual powerhouse it is today.

This article was translated from Dutch and was originally published on Spaarvarkens.be.