“Zuckerberg controls the vote and the company. If he wants to change something, he can, even if it negatively impacts near-term financial results,” two Macquarie analysts say.
“As financial analysts, we tend to get a bit concerned when we see vote-controlling CEOs defining what is meaningful and interactive,” they told clients.
They rate the stock “outperform.”
But their critique is a reminder that Zuckerberg has a lot of power, and he makes mistakes.
Mark Zuckerberg’s control of a majority of Facebook’s stock — which gives him absolute power over the company even though it is publicly traded — could damage the value of those shares, according to Macquarie Capital analysts Benjamin Schachter and Ed Alter.
They voiced their opinion after Zuckerberg announced that the priorities of the News Feed in Facebook would change, based on how “trustworthy” users believe those sources are.
“The changes announced by FB should remind investors that Zuckerberg controls the vote and the company. If he wants to change something, he can, even if it negatively impacts near-term financial results,” the pair told clients on January 17, in a note seen by Business Insider.
“It is concerning to us that Zuckerberg’s focus is defined by ‘meaningful social interactions’ that are more …read more
Source:: Businessinsider – Technology