‘Tone deaf’: Mark Zuckerberg is a big problem for Meta investors

Under Zuckerberg, the statement adds, “we have established a track record of creating value for our shareholders and navigating important opportunities and challenges.” The company’s investments to improve privacy and safety “may not have been possible if our board of directors and CEO were focused on short-term success over the long-term interests of our community and our company.”

In the S&P 500, 33 companies have unequal voting rights similar to those at Meta, according to ISS Corporate Solutions, including Google parent Alphabet, Paramount Global, and Comcast.

Zuckerberg’s stake means he has been hit especially hard by the stock’s collapse. Over the past 13 months, his total wealth loss has exceeded $US100 billion ($156 billion). His apparent willingness to stomach such losses is a sign of his faith in the metaverse, and if the bet does play out, investors may one day look back with relief that Zuckerberg wasn’t forced to change course.

Zuckerberg deserves the benefit of the doubt, said Mark Iong, a fund manager at Homestead Advisers.

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“He took Facebook public when it had huge margins, so he clearly cares about making money. He waited years to monetise WhatsApp, so he’s clearly patient. And he bought Instagram early, so he’s clearly smart,” he said. “I think he’s earned the right to pursue this long-term strategy.”

Bloomberg

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