Facebook came under fire in its first shareholder meeting – with disgruntled investors unhappy with the value of their stock.
The social networking site’s head honcho, Mark Zuckerberg, himself acknowledged the meeting definitely had a negative theme running through it, with a number of cynical questions being fired in his direction throughout the question and answer session.
Facebook debuted on Wall Street in May 2012, with shares valued at $38: Since then it has witnessed a decline in share prices of up 37% at times.
Angry shareholders demanded reassurances on the future value of their stock and brought up concerns over Google+, a social network rival to Facebook. They also raised concerns over the increasing popularity of photo-sharing sites, and of course privacy concerns following the recent NSA news stories.
Facebook CEO, Mark Zuckerberg said: “We understand that a lot of people are disappointed in the performance of the stock, and we really are, too.
“It is our job here to build a great company. We think that, over time, we are building an asset and a network continually valuable in the world and we will continue to do that.”
Despite a user base of over one billion people, the social networking site has struggled to fully capitalise on its wide audience. In spite of the concerns from shareholders however, Facebook still generated revenue figures of $1.5bn for its first quarter, with much of it generated through social media advertising.
In particular, mobile advertising generates 30% of the firm’s overall ad revenue, and this was something Zuckerberg wanted to highlight going forward.
Zuckerberg added: “Our strategy is to build great mobile apps, get more people to be able to connect through them, and build a network people can use and monetize that by building a strong advertising engine.
“Unfortunately, we don’t have control over the share price, particularly in the short-term.
“As people use our mobile experiences more and more, we’ll be able to grow our businesses and build the economic engine around that to continue growing our revenue and profitability going into the future.”
On Tuesday night (June 11), Facebook stocks closed at $24.03, down around 1.2%.
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