News Feed changes trigger 4% fall in Facebook shares

News Feed changes trigger 4% fall in Facebook shares

Mark Zuckerberg, Facebook's chief executive, said in an interview with The Times on Thursday that he wanted the company to focus on "meaningful interaction".

Shares of Menlo Park, California-based Facebook tumbled 4.5 per cent on Friday in NY, cutting Zuckerberg's fortune to US$74 billion on the Bloomberg Billionaires Index. If that decline holds through the close of trading, he will lose his place as the world's fourth-richest person to Spanish retail billionaire Amancio Ortega.

Facebook's stock price dropped nearly 6 percent on Friday morning before regaining some ground. "The publishing industry has been notoriously slow to adapt to the rapid and constant changes brought about by social media platforms", he said. We gravitate toward people like us.

News, brand and video content has "exploded" in recent years, "crowding out the personal moments that lead us to connect more with each other", Zuck wrote.

Facebook says it will highlight posts you are most likely to engage with and make time spent on social media more "meaningful".

Facebook and companies from Twitter to Apple have been confronting a mounting public backlash against technology and social media, as the public grapples with a constantly connected life in which they are exposed to fake or biased news, cyber bullying and even internet addiction. We've seen people interact way more around live videos than regular ones.

Admitting that its changes will likely reduce the time people spend on Facebook less was a big deal for the company.

"People will actually spend less time on Facebook, but we feel good about that because it will make the time they do spend more valuable, and be good for our business in the end", he added.

Last week, Zuckerberg said his resolution for 2018 was to "fix" the social network he co-founded.

Facebook has been under fire for months for the proliferation of Russian-created "fake news" on the platform that may have impacted the 2016 presidential election. Last year, lawmakers berated Facebook, Google and Twitter for failing to prevent Russian manipulation on their platforms during the 2016 United States presidential election.

"If this change is as significant as they describe it, news organizations will go out of business or succeed based on a change that they didn't necessarily have input on", Kint said. Some speculate this could be a ploy to force these companies to buy more Facebook ads.

The algorithm changes will nearly certainly affect ad-supported media companies like BuzzFeed and Bustle, which depend in part on Facebook to bring in an audience. "They don't think there are any real cracks in the Facebook story". "It may not be good for the business in the short term". In the company's early years, the news feed was a scrolling update about the personal activities of friends and family members.

The move will not affect advertisements - users will continue to see the same ads they have before, "meaningful" or not. While Facebook has made plenty of changes to its news feed algorithm in the past, he said, this time might be different.

There have also been complaints that the news feed - a stream of messages, photographs and videos - increasingly features posts from companies rather than friends. There will be fewer videos, which Facebook considers "passive".

"If Facebook downplays "low quality" publishers, as is widely rumored, it could be a net positive for Gizmodo, Jezebel, The Root and our other brands", Narisetti said in an email.

Will publishers pay to get their posts in front of a larger Facebook audience? "In our view, making the feed more relevant should boost user and engagement growth over time".

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