JLens urges Meta shareholders to back content moderation report

NEW YORK - JLens, a registered investment advisor, is calling on Meta Platforms, Inc. (NASDAQ:META) shareholders to support a proposal requesting a report on the company’s content moderation practices at its May 27 annual meeting.

Shareholder Proposal 8 requests Meta prepare a report detailing its policies and effectiveness in addressing antisemitism and other forms of online hate on its platforms. The report would evaluate moderation, enforcement, user protection, ad policies and transparency efforts, with findings made publicly available within one year, according to a press release statement.

A similar proposal submitted by JLens at Meta’s 2025 annual meeting received nearly 47% support from votes cast by independent shareholders. Last year’s proposal was supported by proxy advisors Institutional Shareholder Services and Glass Lewis & Co.

JLens cited a report by the ADL Center on Extremism titled "How Meta’s Content Moderation Changes Risk Turning Instagram into a Hub for Hate," which found Instagram failed to remove 93% of hateful and extremist content identified by researchers when reported by an average user.

Meta’s Oversight Board raised concerns about the company’s rollback of fact-checking and content moderation policies, stating the changes were implemented without adequate human rights review.

In March 2026, a New Mexico jury found Meta liable for misleading consumers about platform safety and endangering children, ordering the company to pay $375 million in civil penalties for violating state consumer protection laws.

"The evidence is coming from every direction and it all points to the same conclusion: Meta has repeatedly failed to safeguard users from hate and other dangerous content," said Ari Hoffnung, managing director of JLens.

Meta derives approximately 97% of its revenue from advertising, according to the statement. The company generated $215 billion in revenue over the last twelve months with an impressive gross profit margin of 81.94%, according to InvestingPro data. Despite the governance concerns raised by shareholders, InvestingPro analysis indicates Meta remains undervalued relative to its Fair Value, placing it among stocks on the platform’s most undervalued list. The stock has declined 10.3% over the past week, with shares currently trading at $608.75 against a market capitalization of $1.55 trillion.

JLens has filed a Notice of Exempt Solicitation with the U.S. Securities and Exchange Commission regarding the shareholder proposal.

In other recent news, Meta Platforms reported first-quarter revenue of $56.3 billion, marking a 29% year-over-year increase, driven by robust advertising growth and heightened user engagement across its suite of apps. The company’s operating income exceeded consensus estimates by 21%, highlighting strong financial performance despite global challenges. However, concerns about Meta’s ability to generate returns on its AI investments prompted BMO Capital to lower its price target from $730 to $720, while maintaining a Market Perform rating. Similarly, Guggenheim reduced its price target to $800 from $850, citing increased expenses impacting earnings and cash flow estimates for 2027.

Meta also completed the acquisition of Assured Robot Intelligence, a startup specializing in AI models for robots, as part of its strategy to advance humanoid technology. The financial terms of this acquisition were not disclosed. Meanwhile, the company faced criticism from Senators Marsha Blackburn and Amy Klobuchar for removing advertisements from attorneys representing clients allegedly harmed by social media platforms. These developments come amid a broader AI rally, with tech giants driving significant gains in the S&P 500, according to Wolfe Research.

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