Who could slow down Mark Zuckerberg’s costly plan to pivot Meta Platforms (META) in the metaverse? He should be one of the biggest loser investors.
Just 10 Meta investors besides Mark Zuckerberg, including several ETF giants such as Vanguard and Black stone (BLK), owns the largest chunk of the company formerly known as Facebook, says an analysis of Investor’s Business Daily data by S&P Global Market Intelligence and MarketSmith. As a group, they own a third of the company, surpassing even Zuckerberg’s No. 1 position at 13%.
And those investors have the most to lose from the company’s decision a year ago to shift from lucrative social media to disruptive virtual reality. They’ve tracked more than $211 billion in market value in their own current positions this year. They have lost even more than Zuckerberg, who is down $85 billion.
“Meta, which was already struggling to adjust to changes in Apple’s mobile ad tracking policies, saw its ad revenue fall about 4% year over year in the September quarter,” says a report by S&P Global Market Intelligence. “Meta is in the process of shifting its core focus from social media to the future metaverse, which is also not sitting well with investors.”
The Meta Debacle
Meta’s investors are paying a heavy price for the company’s decision to change its operations about a year ago.
Just this year, Meta shares have fallen more than 73% to 89.48. That has shaved more than $650 billion off the company’s market value. Meta’s loss in market value exceeds the value of 99% of S&P 500 companies individually. It also makes Meta the worst-performing stock in the S&P 500 this year.
And if you own mutual funds and ETFs, you’re also holding a big chunk of the losses. Meta, on its own, holds a 17% position in the SPDR Communication Services Select Sector ( XLC ), a 12% position in the Vanguard Communication Services ETF ( VOX ), and a 10% position in the iShares Global Communication Services ETF ( IXP ).
But will these ETF giants speak up?
Who holds the Meta Bag?
Meta is somewhat unusual among S&P 500 companies in that the founder, Zuckerberg, is still the top shareholder with 347.8 million shares. But the ETF giants as a group own even more than he does.
Vanguard is the No. 2 holder of the stock with 180.4 million shares. This represents more than 6.8% of the company. And because of that massive position size, Vanguard has shed over $44 billion in the stock this year.
Another ETF behemoth, BlackRock, is Meta’s No. 3 largest stockholder with 152 million shares valued at 5.7% of the company. BlackRock has shed more than $37 billion this year in the stock. Rounding out the top 5 holders are other ETF and mutual fund players such as American Funds parent Capital Research with a 4.5% position and Fidelity FMR at 4.2%.
Several co-founders also remain in the top 10 such as Eduardo Saverin at 2% and Dustin Moskovitz at just under 1%. But it will be up to the major capital firms to speak up. The activist investors, so far, own only a small part of the company. New York State Common Retirement Fund owns just 0.18% and DE Shaw 0.13%
The question now is whether some activists will be lured by Meta’s suddenly lower price?
The Biggest Meta Losers
Top Meta Platforms Stock Holders and Paper Losers This Year So Far
|Holder||Value lost this year ($ billions)||% held in outstanding shares|
|Mark Elliot Zuckerberg (Founder, Chairman & CEO)||$85.9||13.1%|
|Research and Capital Management||29.8||4.6|
|State Street Global Advisors||22.2||3.4|
|Eduardo Saverin (Co-Founder)||13.2||2.0|
|T. Rowe Price Group||12.7||1.9|
|Geode Capital Management||10.5||1.6|
|Norges Bank Investment Management||6.9||1.1|
|Dustin Moskovitz (Co-Founder)||6.4||1.0|
Sources: S&P Global Market Intelligence, IBD
Follow Matt Krantz on Twitter @mackrantz
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