Facebook CEO Mark Zuckerberg Defends Company Strategy At First Shareholder Meeting
Facebook CEO Mark Zuckerberg faced some intense questions on Tuesday at the company’s first annual shareholder meeting. This is the company’s first annual shareholder meeting since the company had a rough IPO in May 2012. Zuckerberg was at the helm of the company as their stock declined over 37% since debuting at $38.
“We’re disappointed with the performance of the stock over the past year,” acknowledged Zuckerberg. “The real question is: What are we going to do about it?”
At the meeting in a hotel in Millbrae, California, Zuckerberg said that nothing “has made me really think that the fundamental strategy is wrong or that what we’re building isn’t valuable.” Facebook shareholders complained during the Q&A session that they bought the stock with high hopes and have been seeking guidance on whether they will be able to recoup losses. Facebook has never traded above their offering price since going public.
Part of the reason why Facebook’s stock price dropped is because analysts have been concerned that they do not have a solid mobile ad strategy. Now mobile ads account for 30% of their ad revenue. Unfortunately, revenue growth has dipped over the past two years.
Zuckerberg said that the company is still seeing an increase in traction. The number of “likes” and comments on the service has gone up “per person about 50%” over the past year.
Facebook said that the company has always been taking a “long-term view.” The company said that they plan to stay focused on improving the product and growing revenue.