Meta CEO Mark Zuckerberg has never been the most liked of the billionaire tech bros. However, the Facebook creator has been under a particularly hot fire as of late, causing Meta investors to turn against him.
As the social media company funnels money into the Metaverse, losses pile up. With billions of dollars wasted, it seems that the company’s biggest investors are starting to get cold feet.
For a decade, Meta — formerly just Facebook — was a rather safe investment. Over the past few years, the company has turned sour as it chases creation of the virtual world.
Last week, it was reported that Meta’s valuation plunged by $700 billion as the company’s shares fell to its lowest value since 2016. After two years of controversies and poor decisions, stockholders are turning heel against Zuckerberg’s plans.
“[Zuckerberg is] tone deaf to what the owners of the company want, outside of himself,” investor David Katz told Bloomberg. “The stock could double in a year with better management, with management that is more focused on shareholders.”
Katz comments come after other investors released an open letter to the Meta CEO. Released on Medium, investor Brad Gerstner explained that he and other stockholders are terrified of the CEO’s insistence on creating The Metaverse.
Despite many investors turning away from Meta, there are still some on Zuckerberg’s side. Longtime Meta investors who’ve seen the CEO work for years are confident that the Metaverse ploy will pay off.
“He took Facebook public when it had huge margins, so he clearly cares about making money,” said Meta investor Mark Long. “He waited years to monetize WhatsApp, so he’s clearly patient. And he bought Instagram early, so he’s clearly smart. I think he’s earned the right to pursue this long-term strategy.”
Meta’s lofty goals for putting the vast population inside mixed reality worlds is a huge undertaking. It’s also an undertaking that the general public are seemingly against, us included. So is there any hope?
If Meta Investors do stick with the company, there’s no guarantee that the tech giant will create the Ready Player One immersive world that people have been promised. In fact, with the current state of its Metaverse technology, it would be a miracle.
As for Zuckerberg’s departure, investors calling for the CEO’s firing will not get their wish. At the time of writing, the billionaire owns 90% of the company’s unlisted Class B shares, giving him complete control. Zuckerberg is here to stay.