Facebook founder Mark Zuckerberg faced an angered group of shareholders at the just concluded first Facebook stockholder's meeting.
These stockholders were complaining of the company's steadily declining stock prices, which to date has recorded a 37 percent decline since its debut on Wall Street last year.
Facebook stocks have yet to climb above its initial public offering price of $38 per share. On Tuesday, stock prices further declined by 1.2 percent by closing at $24.03 per share.
Despite reported growth to 1.1. billion users, greater than any other social networking sites worldwide, Facebook is still struggling to pull its stock prices up much to the dismay of its shareholders.
During the question and answer portion of the meeting, shareholders could not conceal their annoyance and related how they suffered with the continuous slump. They said they bought the stocks filled with optimism and high hopes, and now, they are beset with worries whether they could still recover their losses.
Mr. Zuckerberg, who presided the meeting, recognised that shareholders' anxiety seemed to be the "theme" of the gathering. But he tried to reassure them and allay their fears by saying nothing "has made me really think that the fundamental strategy is wrong or that what we're building isn't valuable."
Facebook was the first US company that launched in the stock market with a value of more than $100 billion. Aside from its first day trading price, however, its shares have never really traded vibrantly and are yet to surpass the IPO price.
The company has tried to address some of the issues burdening stock prices by creating mobile ads. These are more aptly suited to the small smartphone screens that users commonly use to access the site.
Facebook reported in its 2013 first quarter performance that their mobile ads account for 30 percent of their ad revenue. But compared to two years ago, the company's revenue growth is still considerably low. The sudden rise of new mobile apps targeting the younger market has also sparked concerns that Facebook may be on the verge of losing some of its users.
During the stockholder's meet, the 29 year-old Zuckerberg addressed these issues by saying that Facebook will only work on continuously growing alongside newer, competitor services.
"None of the trends that we see right now seem like they should get in the way of our success in any meaningful way," he said.
Also during the meeting, Zuckerberg reacted to the reports made by the Guardian and Washington Post about an underground government program that aims to gather data from all the leading internet entities.
He assured shareholders that Facebook does not allow this. He reiterated that the National Security Agency are not given direct access to the social networking site's servers or user data.
"No one has every approached us to do anything like what was reported," he said.
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