Meta Stock bulls have one big problem: Mark Zuckerberg

Meta Stock bulls have one big problem: Mark Zuckerberg

Mark Zuckerberg built Meta Platforms Inc into one of the largest companies in the world, but some investors now see it as an obstacle.

Mark Zuckerberg Building meta pads Inc. to one of the world’s largest companies, but some investors now see it as an obstacle to a stock recovery from a historic sell-off.

Facebook’s parent company is down 72% this year, as last week’s earnings pushed shares to a multi-year low. Biggest Weight on the Stock: Meta Spends Billions of Dollars to Develop metaverseAn immersive virtual world the CEO has long believed to represent the future of computing.

Shares fell 6.1 percent on Monday, closing at their lowest levels since October 2015, as they led a broad decline in technology and Internet Stores. The Nasdaq 100 was down 1.2%.

The strategy limits profits even as the company admits it is unlikely to generate significant revenue for years. While investors may be eager for Meta to renew its focus on selling ads to billions of social media users, the company’s structure gives Zuckerberg complete control, so there’s little they can do other than what they’ve already been doing: sell.

“He doesn’t know what the company’s owners want, outside of his personal realm,” said David Katz, chief investment officer at Matrix Asset Advisors. “The stock could double in a year with better management, management that focuses more on shareholders.”

Despite these issues, Cutts sees the stock as “too cheap,” and said that “on a longer time horizon, if you’re willing to hang on, I think there’s a good chance the Meta will be much higher than it is today.”

Zuckerberg owns or controls approximately 90% of the company’s unlisted Class B stock, which has 10 votes each for one vote for each publicly traded Class A stock.

The structure prevents activists from influencing the board and management, which is something that happened to him big technology In the past. In 2014, Carl Icahn defended apple Accelerate the buyback program as a way to raise the stock price.

When asked about Zuckerberg’s control, a Meta spokesperson referred to the company’s proxy statement, which states, “We believe that our capital structure serves the interests of our shareholders and that the current corporate governance structure is sound and effective.”

“We have established a proven track record of creating value for our shareholders and addressing significant opportunities and challenges,” the statement under Zuckerberg adds. The company’s investments to improve privacy and security “may not have been possible if our board of directors and CEO had been so focused on short-term success over the long-term interests of our community and company.”

According to the S&P 500, 33 companies have unequal voting rights similar to those of Meta IS Corporate solutions, including The Google parents the alphabet Inc. and Paramount Global and Comcast Corp.

Zuckerberg’s share means that he has been hit hard by the stock’s collapse. Over the past thirteen months, the total losses of his fortune have exceeded $100 billion. His apparent willingness to take such losses is a sign of his faith in the metaverse, and if the bet works, investors may one day look back with relief that Zuckerberg was not forced to change course.

Mark Ewing, fund manager at Homestead Advisers, said Zuckerberg deserves the skepticism.

“Taking Facebook General when it has huge margins, so he obviously cares about making it money. He’s waited years to monetize WhatsApp, so he’s obviously impatient. And he bought Instagram early, so he’s obviously smart,” he said. “I think he’s earned the right to pursue this long-term strategy.”

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