Mark Zuckerberg recently opened Meta’s annual Connect event with a philosophical reflection on innovation, describing building technology as “an act of love.” However, the keynote sidestepped the company’s two flagship platforms, Instagram and Facebook, focusing instead on a suite of artificial intelligence products including the agentic chatbot Muse and various smart glasses. This pivot highlights a stark contrast: while Meta’s business metrics are thriving, CEO Zuckerberg faces intensifying reputational damage amid widespread legal challenges and public distrust.
Over the past year, Meta has been engulfed in litigation alleging the company knowingly designed addictive products for minors. The legal proceedings have surfaced internal documents and whistleblower testimony that depict a corporation prioritizing profit over user safety. According to a Pew Research Center poll from last year, approximately two-thirds of Americans hold an unfavorable view of Zuckerberg. This sentiment was further amplified by the release of Aaron Sorkin’s film “The Social Reckoning,” in which Jeremy Strong portrays Zuckerberg as a villain dismissive of corporate accountability.
Critics have begun comparing Meta’s current situation to the “Big Tobacco” era, suggesting an industry-wide backlash is forming. Recent regulatory and legal setbacks have been severe. A New Mexico jury found Meta to be a public nuisance, akin to air pollution, fining the company $942 million for failing to warn the public about risks to children. Additionally, Meta agreed to an $18 billion settlement with 48 US states and several territories, promising to implement stricter usage limits for young users. The company maintains it has done nothing wrong and is appealing various verdicts.
Despite these headline-making controversies, Meta’s commercial performance remains robust. Second-quarter revenue surged 28% compared to the same period in 2025, and app usage across platforms like Instagram and WhatsApp grew by 3% year-over-year. The introduction of Muse, Meta’s new AI assistant, has been particularly successful. Capable of executing multi-step tasks such as ordering groceries or managing emails, the app has already recorded more than five million downloads and three million weekly active users in its first month, outpacing early adoption rates for ChatGPT in North America.
The rapid adoption of Muse presents a complex challenge for Meta regarding data privacy. The service requires extensive user data, including credit card details and inbox access, to function effectively. This demand comes against a backdrop of lingering privacy scandals, including the Cambridge Analytica breach and a recent New Mexico jury finding that Meta lied about how it used personal information. Analysts note that while public trust is fragile, consumer behavior suggests a “Teflon” effect where scandals bounce off financial results. Patrick Moorhead of Moor Insights & Strategy observed that Meta is in a stronger position than expected, as users continue to embrace the technology despite disliking the company. As Meta pushes forward with its vision of AI-powered smart glasses, the central question remains whether the tech giant can sustain its growth trajectory while navigating an existential trust deficit.
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