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Wednesday, 12 June 2013 11:07

Zuckerberg faces the music

Written by Nick Farrell

Shareholders furious

Facebook Chief Executive Mark Zuckerberg faced angry questions about the company's ever slumping stock price at the social notworking site’s first shareholder meeting.

Zuckerberg has seen over a 37 percent decline in the stock since its debut at $38. However he told them that he believed Facebook was on the right path toward long-term success, even though he was disappointed with its performance on Wall Street.
But several Facebook shareholders complained during the question-and-answer session about how they had suffered from the stock's decline.

One of the problems is that the company has been unable to develop mobile ads better suited to small smartphone screens that users increasingly use to access the service. Mobile ads account for 30 percent of Facebook's ad revenue. But revenue growth remains sharply below that of two years ago, and the popularity of new mobile apps aimed at younger users has raised concerns that Facebook may risk losing its grip on consumers.

Nick Farrell

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