Mark Zuckerberg has an image problem - so why is Meta's business booming?

Mark Zuckerberg opened his keynote speech at Meta Connect with a heartfelt tone, describing building as an act of love. He spoke about Meta's latest AI products, including Muse, smart glasses and a wrist-worn AI device. Surprisingly, he did not mention Facebook or Instagram, two of the company's most popular platforms, which have contributed to Meta's $2tn valuation.

Since last year, Meta has faced a series of legal actions accusing the company of designing addictive products for young users. This has led to the release of internal emails, documents and whistleblower testimony, which lawyers and prosecutors have used to make their case. A film by Aaron Sorkin, The Social Reckoning, further portrays Zuckerberg as a villain, with critics labeling Meta as the "Big Tobacco" of the social media industry.

Despite the negative publicity, Meta's products seem to be performing better than ever. User engagement with Meta's apps continues to rise, and the company's new AI assistant is already attracting users. The company reported a 3% year-on-year increase in users for some of its apps and a 28% increase in revenue for the second quarter of 2025 compared to the same period in 2025.

While Meta has agreed to various settlements and changes to its platform, including time limits and restrictions for young users, the company's stock price has surged 4% immediately following the settlement, and is up more than 25% over the last month. Critics argue that Meta has tested its limits on consumer tolerance for bad behavior, but the company's seemingly impervious nature to scandals raises the question: can anything really clip Meta's wings?