Is Mark Zuckerberg looking at a Meta shareholder rebellion? The company’s investors are less than thrilled with how Zuckerberg is promoting his Metaverse, the Financial Times reported.
Some investors have even been reported to have gotten testy with Mark Zuckerberg during investor calls.
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And Meta/Facebook stock is still tumbling at a higher rate than the markets in general. So the Facebook slide cannot be dismissed simply as part of the general global financial crisis sparked by the continuing war in Ukraine.
So, the real question for Meta stockholders right now is what is the best thing to do with the company’s money? What should they be spending it on at a time of contraction? Meta said that the company expects to spend $39 billion in 2023.
“If any other company had done this you’d have activist investors writing letters, proposing alternative slates of directors, demanding change,” Jim Tierney, chief investment officer for US growth at AllianceBernstein, a Meta shareholder, told Financial Times. “I think Mark heard crystal clear what investors wanted. He’s made his decision.”
“When people had callbacks with the company they got more disgusted, not less disgusted,” added Tierney about what happened when the company actually called some people back in an attempt to assuage their concerns.
David Older, head of equities at €33.2bn asset manager Carmignac, which has holdings in Amazon, Microsoft and Google but not Meta told Financial Times, “Zuckerberg was tone-deaf to the investment community, doubling down on everything,” said. “The timeline for the metaverse is very stretched. I don’t think you’re going to know if it is the right move for five or 10 years.”
Meta said about all of this, “We value the opinions of our investors and regularly engage with them to ensure we’re aware of their respective perspectives.”
The real question here is, however, will Mark Zuckerberg survive as the head of the company that he created? Perhaps, there is nowhere left for the company to go, or grow.
