Friday, January 12, 2018

Facebook Tumbles 4% In Early Trade (FB)

The stock is down  $8.00 (4.26%) at $179.77.
From TechCrunch:

Facebook feed change sacrifices time spent and news outlets for “well-being”
Facebook is making a huge change to its News Feed algorithm to prioritize friends and posts that spark comments between them at the expense of public content, news outlets, and importantly, the total time spent and ads you see on the social network.

CEO Mark Zuckerberg wrote on Facebook today, “I’m changing the goal I give our product teams from focusing on helping you find relevant content to helping you have more meaningful social interactions.” VP of News Feed Adam Mosseri tells TechCrunch “I expect that the amount of distribution for publishers will go down because a lot of publisher content is just passively consumed and not talked about. Overall time on Facebook will decrease, but we think this is the right thing to do.”

The winners in this change will be users and their sense of community, since they should find Facebook more rewarding and less of a black hole of wasted time viewing mindless video clips and guilty-pleasure articles. And long-term, it should preserve Facebook’s business and ensure it still has a platform to provide referral traffic for news publishers and marketers, albeit less than before.

The biggest losers will be publishers who’ve shifted resources to invest in eye-catching pre-recorded social videos, because Mosseri says “video is such a passive experience”. He admits that he expects publishers to react with “a certain amount of scrutiny and anxiety”, but didn’t have many concrete answers about how publishers should scramble to react beyond “experimenting . . .and seeing . . what content gets more comments, more likes, more reshares.”...
...MUCH MORE