Jeff Bezos had to lose a lot from the pandemic phase out.
- Jeff Bezos loses $13.9 billion in net worth in a single day.
- Amazon stock plummets as the phasing out pandemic results in decline in sales revenue.
- French luxury tycoon Bernard Arnault once again becomes the richest man in the world.
- Billionaires added billions to their pocket during a global pandemic.
The French business tycoon Bernard Arnault has once again reclaimed the title of the richest man in the world, thanks to a drastic single day drop in Jeff Bezos’ net worth. Amazon Founder Jeff Bezos recorded a $13.9 billion drop in his net worth last week after Amazon stock plummeted by 7%.
This happened a year after Bezos made history by becoming the first human ever to own $200 billion in net worth. Amazon registered massive profits during the COVID-19 led pandemic that spiked its founder’s personal wealth to eye watering $204.6 billion in August 2020.
The last time Jeff Bezos registered a minor fallout in his wealth was when he set out for space tourism by his own Blue Origin. However, this drop in net worth is different not only because it is worth $13 billion but also because it has resulted due to underwhelming performance of his foundational company Amazon.
Why did Jeff Bezos loose billions in his net worth?
The reason behind the massive drop in the wealth of Blue Origin’s Founder was the less than expected performance of Amazon in the second quarter.
The overall profits of the American behemoth surpassed the forecast, however, the sales revenue felt short of expectations. This has further led to underwhelming sales revenue predictions for the third quarter, therefore, resulting in 7% drop in Amazon stocks.
The situations for the world’s largest ecommerce company were so contrasting a year back that Amazon had to urgently speed up its recruitment in 2020 to meet the drastic increase in online shopping demand. The company registered a jaw dropping increase of 40% in its revenue in May 2020.
However, with the easing of lockdown due to widespread vaccination and phasing out of pandemic, old ways are restoring swiftly. The same led to unprecedented drop in the sales revenue figures.
Bernard Arnault- the richest man once again
Bernard Arnault, the French businessman making fortune out of luxury market, is once again the richest man alive.
With a current net worth of $198.5 billion, Arnault added nearly $100 billion to his net worth during the global pandemic. While the luxury good market suffered a setback during the COVID-19 outbreak, luxury French tycoon surprisingly added impressive figures to his wealth.
Bernard Arnault owns Louis Vuitton, Moet & Chandon, Sephora, and Tiffany & CO. under its luxury conglomerate named LVMH.
LVMH’s market capitalization amounts to more than $400 billion. Arnault holds 47% stakes in the company.
However, Arnault is not the only billionaire who bagged jaw dropping wealth during the pandemic. Out of the total 2,755 billionaires in the world, 86% recorded increase in their wealth since last year.
The combined addition to the billionaires’ net worth on Earth since 2020 amounts to $5 trillion.