Facebook stock plunges on news feed overhaul

Facebook stock plunges on news feed overhaul

Year-to-date, FB has gained 1.65%, versus a 4.14% rise in the benchmark S&P 500 index during the same period.

Those personal updates will therefore become more prevalent in user newsfeeds, he said, adding that posts from other sources will still get promoted if they help encourage social interactions. "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", Zuck wrote in a post announcing the changes. The news feed ranking update, which is set to roll out globally in the coming weeks, is expected to support that goal. Until now, Facebook has tuned the News Feed to favor video in the feed over other types of content.

Facebook says it will surface posts from friends more prominently in the News Feed than those from brands and publishers.

Zuckerberg says they want Facebook to be a decent product that decent people, like you, want to use.

"We believe these changes will be beneficial to Facebook in the medium and long term".

More news: Wendy Williams launched a savage attack on "pregnant" Kylie Jenner

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

Live video and posts askings for suggestions will also be weighted higher. Last year, lawmakers berated Facebook, Google and Twitter for failing to prevent Russian manipulation on their platforms during the 2016 United States presidential election.

Other publishers like Bloomberg have chose to get ahead of the algorithm change and create community-driven Facebook groups around certain topics where they can promote their stories and drive traffic back to their sites, according to Digiday. It was a tool to communicate and engage with the people you cared about. "Traffic to news media's websites via Facebook will likely fall", he said.

Under the revised regime, there will be fewer posts from brands, pages and media companies and more from people.

In a note earlier this week, Wieser reported Nielsen data showing that in September - the most recent month for which this data is available - core Facebook consumption failed to grow year-over-year for a second consecutive month.

More news: Russia, Iran say to adhere to nuclear deal

That could mean well over $20B off the company's market cap today.

"The first four words of Facebook's mission have always been "give people the power", Zuckerberg wrote this week. "It may not be good for the business in the short term".

Conversation is at the centre of Facebook's new approach, according to the organization's explanation for the change. It would take some practice of course-the existing curation is useful because it lets users see a handful of items rather than the hundreds or thousands of things people post-but a company as clever as Facebook can surely provide tools to winnow down the scope on their own. Now, going forward, News Feed priority will be given to posts from friends, family members and groups. That means the experience has largely centered on passive consumption of content.

"Media outlets have already seen a big drop in Facebook results due to other algorithm tweaks, so this isn't a big shock", Lau said. "And the users are getting better quality stuff".

More news: Nintendo Announces New Mario Tennis Title, Dark Souls Remastered

Related Articles