Quantcast
Latest Stories

Facebook shareholders vent ire over sagging stock



Facebook shareholders on Tuesday, June 11, 2013, grilled leaders of the social network regarding how they planned to revive the company’s stock and protect user privacy from snoops including US spy agencies. AP

SAN FRANCISCO—Facebook shareholders on Tuesday grilled leaders of the social network regarding how they planned to revive the company’s stock and protect user privacy from snoops including US spy agencies.

Facebook’s famed co-founder Mark Zuckerberg and chief operating officer Sheryl Sandberg fielded a barrage of questions fired by investors who attended the first annual meeting of shareholders since the stock market debut last year.

“We understand that a lot of people are disappointed in the performance of the stock, and we are too,” Zuckerberg said before the start of a question-and-answer session that followed election of the Facebook board.

“It is our job here to build a great company,” he continued. “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.”

Zuckerberg, who was elected to the board along with Sandberg and six others, urged stockholders to be patient but declined to predict how long it would take to build up shares that sank in a dismal initial public offering on the Nasdaq.

The IPO on May 18 last year sparked a series of crises for Facebook, with the shares plunging from $38 to as low as $17.73 in September.

Shares closed slightly down Thursday at $24.03.

“What the hell is your forecast for revenue and income for the next year?” one shareholder asked gruffly.

Chief financial officer David Ebersman told the investor that Facebook hasn’t made earnings forecasts the way other publicly traded companies typically do because it is young and in “a difficult business to predict right now.”

“My family is a big fan of yours, and because of that I invested blindly,” another stockholder told Zuckerberg and his team. “And now I am under water.”

A woman who said she bought more than 8,000 shares of Facebook at its debut asked the executives whether the stock was a smart buy at $24 a share only to be told the company wouldn’t give individual investment advice.

Another shareholder referred to the IPO as a disaster.

“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,” Zuckerberg said.

“Unfortunately, we don’t have control over the share price, particularly in the short term.”

Facebook priorities for building value over the long term included following its more than 1.1 billion members onto mobile devices; letting other Internet services plug into its social network, and making money with ads.

More people visit Facebook on any given day using mobile applications than do using desktop computers, according to Zuckerberg.

Facebook said its membership continues to grow rapidly and that it is working on a version of the service better suited to use by people in emerging markets where Internet connections be slow or low-capacity.

Zuckerberg dismissed competition from the Google Plus social network, saying the overall market is growing quickly and none of the trends he saw indicated rivals would interfere with the company’s success.

Shareholders were also keen to learn whether Facebook was protecting user data against hackers and a US online surveillance program revealed in the past week.

Zuckerberg said Facebook spends a lot of time making sure “bad hackers” can’t get into its computers and repeated assurances he gave on Friday that the social network doesn’t work directly with US spies.

“No agency has direct access to our servers and no one has approached us,” Zuckerberg said. “The truth is that anyone can go to our website and get access that way, which is why we didn’t say no indirect access.”—Glenn Chapman


Follow us on Facebook Follow on Twitter Follow on Twitter




Recent Stories:

Firetruck rams California eatery; 15 injured 6 mins elapsed American rapper cuts own penis, jumps off building 37 mins elapsed Walker leads Bobcats over Bulls in OT, 91-86 57 mins elapsed 9 confirmed dead after ferry sinks off South Korean coast 2 hours elapsed Man City slips further out of title contention 2 hours elapsed Aquino to public: Learn to sacrifice 2 hours elapsed Fired Yahoo exec gets $58M for 15 months of work 2 hours elapsed Syria most dangerous country for journalists, PH 3rd—watchdog 3 hours elapsed
Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Facebook , Internet , invest , IT , Stock , US

  • You’re Funny!!!

    Where’s a dislike button when you need one?



Copyright © 2014,
.
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement Advertisement
  1. Did Deniece Cornejo lambast Vhong Navarro on social media?
  2. Mommy Dionisia sings ‘Riking Bull,’sends netizens ablaze
  3. Tech company: Change passwords or suffer ‘Heartbleed’
  4. Smart phone apps and sites perfect for the Holy Week
  5. Mommy Dionisia Pacquiao scores, takes over social media
  6. Philippines may watch ‘blood moon’ online
  7. Memes flourish after Pacquiao victory
  8. Heartbleed bug and what you need to know
  9. IT technician found guilty of defrauding firm of P130,000
  10. Online-addicted man arrested over son’s death
  1. Did Deniece Cornejo lambast Vhong Navarro on social media?
  2. Mommy Dionisia Pacquiao scores, takes over social media
  3. Nude and so dangerous
  4. Mommy Dionisia sings ‘Riking Bull,’sends netizens ablaze
  5. Memes flourish after Pacquiao victory
  6. Netizens react to Pacquiao’s victory over Bradley
  7. IT technician found guilty of defrauding firm of P130,000
  8. Philippines may watch ‘blood moon’ online
  9. Ireland’s wedding singer priest an Internet hit
  10. Samsung flagship smartphone goes on sale worldwide
  1. #RejectedBbPilipinas2014Questions flood Twitter
  2. Did Deniece Cornejo lambast Vhong Navarro on social media?
  3. Netizens fall in love with Crimea prosecutor Natalia Poklonskaya
  4. Mommy Dionisia Pacquiao scores, takes over social media
  5. Nude and so dangerous
  6. Why didn’t missing jet passengers use their cellphones?
  7. Mommy Dionisia sings ‘Riking Bull,’sends netizens ablaze
  8. Russia tries to curb Crimean prosecutor’s Internet fame
  9. Memes flourish after Pacquiao victory
  10. Netizens thank Capa for Lee arrest

News

  • Firetruck rams California eatery; 15 injured
  • 9 confirmed dead after ferry sinks off South Korean coast
  • Aquino to public: Learn to sacrifice
  • 20 killed as Islamic extremists rampage in Nigeria
  • Drug firm Novartis to help Leyte firefighter
  • Sports

  • Walker leads Bobcats over Bulls in OT, 91-86
  • Man City slips further out of title contention
  • Federer would skip tennis to be with wife, newborn
  • Manny Pacquiao in PBA? If so, he’ll wear No. 17
  • PSC sets Blu Girls US training
  • Lifestyle

  • Pro visual artists, lensmen to judge Pagcor’s photo contest
  • ‘Labahita a la bacalao’
  • This is not just a farm
  • Clams and garlic, softshell crab risotto–not your usual seafood fare for Holy Week
  • Moist, extra-tender blueberry muffins
  • Entertainment

  • American rapper cuts own penis, jumps off building
  • Jay Z to bring Made in America music fest to LA
  • Why Lucky has not bought an engagement ring for Angel
  • Derek more private with new girlfriend
  • ‘Community’ star happy with return of show’s creator
  • Business

  • Fired Yahoo exec gets $58M for 15 months of work
  • PH presses bid to keep rice import controls
  • PSEi continues to gain
  • Number of retrenched workers rose by 42% in ’13
  • PH seen to sustain rise in FDIs
  • Technology

  • DOF: Tagaytay, QC best at handling funds
  • Smart phone apps and sites perfect for the Holy Week
  • Tech company: Change passwords or suffer ‘Heartbleed’
  • Filling the digital talent gap
  • SSS to shut down website for Holy Week
  • Opinion

  • Editorial cartoon, April 17, 2014
  • A humbler Church
  • Deepest darkness
  • ‘Agnihotra’ for Earth’s health
  • It’s the Holy Week, time to think of others
  • Global Nation

  • Syria most dangerous country for journalists, PH 3rd—watchdog
  • Japan says visa-free entry still a plan
  • First Fil-Am elected to Sierra Madre, Calif. city council
  • UC Irvine cultural night to dramatize clash of values in immigrant family
  • Filipino sweets and info served at UC Berkeley Spring Fest
  • Advertisement
    Marketplace