Markets Insider
- Shares of Facebook are down 4.3% in trading Friday after the social network announced it would once again alter its news feed algorithm to prioritize content from users’ friends rather than brand or publisher pages.
- “We feel a responsibility to make sure our services aren’t just fun to use, but also good for people’s well-being,” CEO Mark Zuckerberg said in a post on his Facebook page Thursday, as part of an announcement regarding the company’s focus on “meaningful interaction.” His 2018 resolution was to fix systemic problems on the site, like harassment.
- The move is worrying for publishers, many of which have expressed concern, as the feed is a massive source of traffic and revenue for them.
- Longtime Facebook bull analyst Scott Devitt of Stifel downgraded the stock from buy to hold after the news broke, citing the uncertainty related to pending changes and saying was incrementally cautious. JPMorgan, which has an overweight rating, said earlier that the change could bring “near-term weakness.”
- Facebook stock has gained 48% over the last year, and could grow another 18% to $ 213, analysts polled by Bloomberg predict. The company will report earnings on January 31.
- Watch Facebook’s stock price move in real-time on Markets Insider here>>
