S&P 500: 10 Meta Investors Lose $211 Billion On Mark Zuckerberg’s Memory

Who could delay Mark Zuckerberg’s expensive plan to pivot Meta Platforms (META) into the metaverse? He will be one of the investors with the biggest losses.




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Just 10 Meta investors, besides Mark Zuckerberg, including many ETF giants like Vanguard and Black Rock (BLK), which owns most of the company formerly known as Facebook, says an Investors Business Daily analysis of data from S&P Global Market Intelligence and MarketSmith. As a group, they own a third of the company, surpassing even the No. 1 Zuckerberg at 13%.

And it’s these investors who stand to lose the most from the company’s decision a year ago to switch from lucrative social media to offensive virtual reality. They were seen as losing more than $211 billion in market value in their current positions this year. They lost even more than Zuckerberg, who is down $85 billion.

“Meta, which has already struggled to adapt 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 from S&P Global Market Intelligence. “Meta is in the process of pushing its main focus away from social media towards the future metaverse, which is not going well with investors either.”

The Meta Debacle

Meta investors are paying a heavy price for the company’s decision to change its business about a year ago.

Just this year, Meta shares are down 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 is greater than what 99% of the companies in the S&P 500 are worth 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 also have a large portion of the bag of losses. Meta, alone, has a 17% position in the Communications Services Select Sector SPDR (XLC), a 12% holding in the Vanguard Communication Services ETF (VOX) and a 10% spot in the iShares Global Communication Services ETF (IXP).

But will these ETF giants speak up?

Who Owns the Meta Bag?

Meta is somewhat unusual among S&P 500 companies in that the founder, Zuckerberg, remains a major shareholder with 347.8 million shares. But there’s more to the ETF giants as a group than that.

Vanguard is the No. 1 holder. 2 of the stock with 180.4 million shares. That represents more than 6.8% of the company. And because of that huge position size, Vanguard is down more than $44 billion on the stock this year.

Another ETF behemoth, BlackRock, is the largest holder of Meta No. 1 stock. 3 with 152 million shares worth 5.7% of the company. BlackRock is down more than $37 billion this year on the stock. Rounding out the top 5 holders are other players in ETFs and mutual funds such as American Funds’ parent Capital Research with a 4.5% position and Fidelity FMR at 4.2%.

Some co-founders, too, are still in the top 10 like Eduardo Saverin with his 2% position and Dustin Moskovitz with just under 1%. But it will be up to the big fund companies that need to speak up. So far, active investors only own a small portion of the company. New York State Common Retirement Fund owns only 0.18% and DE Shaw 0.13%

The question now is whether any actors will be attracted by the suddenly lower price Meta?

The Biggest Plus Losers

Top Meta Platforms stock holders and their paper losses this year so far

Holder Value lost this year ($ billions) % owned on outstanding shares
Mark Elliot Zuckerberg (Founder, Chairman & CEO) $85.9 13.1%
Vanguard Group 44.5 6.8
Black Rock 37.4 5.7
Research and Capital Management 29.8 4.6
FMR 27.7 4.2
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 @math

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