Facebook Stock Down : Investors Don’t Like The News Feed Change. Facebook on his recent announcement Thursday stated to prioritize family and friends post over on News Feed content over brands and publishers to ensure and emphasize more on “meaningful interactions” on its platform.
This surely has hit the shares of Facebook, according to CNBC the analyst says it has both the pros and cons of the decisions. It seems quite confusing but that’s the fact, for now the stocks are down but will soon recover as per the analysts.
Nonetheless the new decision made by the CEO Mark Zuckerberg has immensely effected the share value of the company, which went down to 4% valuing 3.3 billion$. In his announcement he earlier stated that he expects “the time people spend on Facebook and some measures of engagement will go down.”
Which clearly shows the amount of clarity and estimations in his decisions made by him. How the progressions will influence Facebook’s business over the long run isn’t clear, yet given the company’s procuring power, an algorithm change may not make any much difference. The company fights that the change reflects what clients need: updates from their associations instead of news or brand content.
However, the media industry will likely take a hit from the decision taken as they majorly depends on Facebook to get large traffic and brand promotions because of large and wide audience availability. For sure their website traffic along with the revenue.
We at Vitsmuni believe that the decision taken by Zuckerberg will surely have an effect in a manner both good and bad way, for short run it’s going to have a hit but if we see the long run objective and perspective it will have a good effect. Nonetheless the gap created between Facebook and the publishers and promoters is surely going to taken as a advantage by other social platform. Will have to wait and watch what more is going to come out of it.
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