Analyst Note
| Ali Mogharabi |On June 1 Meta Platforms announced that Sheryl Sandberg, the firm’s current chief operating officer, will resign but will maintain her seat on the company’s board. Her exact resignation date was not disclosed. She will be replaced by Javier Olivan, who has been with the firm since 2007 and is Meta’s chief growth officer and vice president of cross-Meta products and infrastructure. While Sandberg is considered the backbone of Meta’s successful advertising business, she has also surrounded herself with talented colleagues over the years, as the firm’s co-founder and CEO, Mark Zuckerberg, stated to the firm’s employees. For this reason along with the firm’s network effect moat source that continues to attract advertisers to its various platforms, this announcement does not change our $384 fair value estimate of Meta or our exemplary rating of the firm’s capital allocation.