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

Mark Zuckerberg initiated his keynote speech at Meta's annual Connect product event with a reflective tone, describing building as an act of love. He then proceeded to unveil Meta's latest AI products, including an agentic chatbot, smart glasses, and an attachment for wrists that resembles a Tamagotchi. However, Zuckerberg notably omitted mentions of Instagram and Facebook, Meta's popular social media platforms.

Throughout the past year, Meta has faced numerous legal challenges, accusing the company of intentionally designing products that are addictive for young users. This has led to the release of internal emails, documents, and whistleblower testimonies, which attorneys have used in personal injury cases. Zuckerberg's popularity has declined, with 67% of Americans expressing an unfavorable opinion of him. Moreover, the film "The Social Reckoning" portrays him as a villain.

Despite the negative publicity, Meta's products continue to perform well. User engagement remains high, and the new AI assistant is already attracting users. This raises the question of whether Meta can avoid the consequences of its scandals, or if it is now a company with a "Teflon" reputation, unscathed by legal issues. The year has been challenging for Meta, with various lawsuits and settlements.

However, the company reported a 3% year-on-year increase in app usage and a 28% rise in revenue for the second quarter of 2025. While Meta has agreed to certain restrictions on teen usage, the company maintains that teens account for less than 1% of its revenue. Competitors like TikTok and Google's YouTube have more popularity among young users.

Furthermore, Meta's settlement with 48 US states prevents key executives from testifying and stops the release of additional internal documents, benefiting the company.