Facebook will focus on meaningful connections, Mark Zuckerberg says
- Author: Essie Rivera Feb 01, 2018,
Feb 01, 2018, 0:39
Zuckerberg disclosed on Wednesday that changes made last quarter reduced time spent on the platform by "roughly 50 million hours every day". The focus on more "meaningful connections" is expected to make the company's long-term future more viable. Although Facebook posted YoY growth, its quarter-over-quarter growth appears to be slowing down.
The decline is said to come from a decision to show fewer viral videos in the News Feed.
The move had anxious investors, who feared that the changes would lead people to spend less time on Facebook.
Total advertising revenue was $12.78 billion, compared with analysts' estimate of $12.30 billion, according to Thomson Reuters I/B/E/S. Time spent on the network- a number that drives the tech giant's revenue - is down by an estimated 50 million hours per day. Now she says she spends five minutes there.
It is estimated that changes will also affect Facebook's Instagram. Felder, who works in digital marketing for entertainment websites and has a lifestyle blog, still has the Facebook app on her phone but she's turned off notifications.
Facebook sent a tremor through USA politics past year when it said that Russian agents used Facebook to try to sway American voters from 2015 to 2017, an allegation that Moscow denies. "They are completely off Facebook".
The cash haul represented a 47 percent jump in revenue year-over-year - giving the Menlo Park, Calif. -based company its 11th straight quarterly revenue beat. Facebook explained the discrepancy on earnings per share with a $0.77 negative impact of the Trump tax cuts. Without the adjustment, Facebook would have earned $2.21, topping consensus of $1.94.
Shares of the company were down 4.1 percent at $179.25 after the bell.
Facebook had warned earlier this month that user engagement would take a hit in the near term from attempts to tweak its flagship News Feed feature.
"2017 was a strong year for Facebook, but it was also a hard one", Zuckerberg said in a statement. He added that, in 2018, the focus won't just be to ensure Facebook is fun to use, but also "good for people's well-being and for society".
Zuckerberg has vowed to fix the issues at the social network, amid concerns it was used as a platform for Russian meddling in the USA elections. Some critics have begun arguing that social networks like Facebook and Snapchat can be addictive.
For CEO and co-founder Mark Zuckerberg, that's a necessary drop for his company's future success.
Facebook said local news publishers of all sizes will benefit from the News Feed update.
Facebook to prioritize local news over "divisive" national issues Facebook will prioritize local news sources in people's news feeds in an effort to avoid "divisive" media and promote civic engagement, according to Mark Zuckerberg.