Facebook this week announced it will deliver more local news to US users in its latest effort to manage the flow of information on the enormously-influential social network. In addition to a pause in user growth, there have been signs that user engagement may have reversed course. Facebook CEO Mark Zuckerberg had warned that the changes would result in a drop in usage and the company has officially confirmed that. In the third quarter, the growth in daily users was the slowest ever.
It's important to note, however, that Facebook's fourth-quarter results were the last to be unaffected by the much-publicized news feed changes which came into effect the week of January 22, and which CEO Mark Zuckerberg said during the earnings call are likely to decrease average time spent on Facebook by five per cent. He said that the time users spend on Facebook will just be more valuable and that "if we do the right thing, I believe that will be good for our community and our business over the long term too".
According to their latest reports, only 184 million people are checking into the site on a daily basis, in comparison to 185 million who were doing it the previous quarter. With Facebook pulling in almost $13 billion in quarterly revenue with a product in flux, Wall Street's reaction on Thursday showed that it's willing to wait and see the results of Zuckerberg's new game plan. Even though much of the public and media may have soured on the social network, Wall Street remains bullish on the company's capability to grow. With all the problems Facebook is facing, reworking the News Feed to demand less attention from users could be unsafe.
He added in the conference call: "We expect Stories are on track to overtake posts in Feed as the most common way that people share across all social apps".
Facebook's earnings call, which took place shortly after its earnings release went live, provided a closer look at the factors behind the quarter's strong numbers. The company has offered numerous solutions to its abuse problems thanks to several News Feed algorithm tweaks and the promise to hire more human moderators, but so far most of those efforts have fallen flat.More news: Russian Jet Buzzes US Military Plane over Black Sea
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SAN FRANCISCO Facebook on Wednesday reported a big jump in profits even though people are spending less time on the world's biggest social network.
Krewell cited President Trump's favorite platform, Twitter, as an example.
Facebook faces a more fundamental problem than the ones company officials cited, suggested Midia Research analyst Mark Mulligan, in a Thursday post.
Facebook said profits in the final three months of a year ago climbed 20 per cent to US$4.26 billion (S$5.59 billion). By and large our best guess remains that Facebook prices are likelier to attack the upside than the downside over the near term.
So is this about time better spent, or time spent elsewhere? "If their experience is noticeably poorer, there is a lot of competition that will try and pick up the traffic". He has written for Reuters, Bloomberg, Crain's New York Business and The New York Times.