Home / / Facebook’s News Feed change leaves investors nervous

Facebook’s News Feed change leaves investors nervous

Mark Zuckerberg wants to create more ‘meaningful interactions' on Facebook

Facebook’s News Feed change leaves investors nervous
Mark Zuckerberg, CEO, Facebook.

Since Facebook's CEO Mark Zuckerberg announced that the social network will reduce non-advertising content on the News Feed, shares fell more than 4%.

Last week Zuckerberg said he would change the user engagement on Facebook where users will instead see prioritised posts from family and friends, instead of advertising content from publishers and brands.

Zuckerberg said ion his Facebook page: "We feel a responsibility to make sure our services aren't just fun to use, but also good for people's well-being.

"As we roll this out, you'll see less public content like posts from businesses, brands, and media. And the public content you see more will be held to the same standard -- it should encourage meaningful interactions between people."

While the CEO plans for more ‘meaningful interactions', he did note that users may spend less time on the platform and this announcement saw Facebook's stock fall by 4%.

Bank of America analyst Justin Post said in a research note that Facebook is moving towards becoming a social platform rather than a news outlet. However whilst this leaves advertisers and investors uncertain, Post added that by improving customer experience the move "could drive higher ad prices to counterbalance."

Follow us to get the most comprehensive consumer tech news delivered fresh from our social media accounts on Facebook, Twitter, Youtube, and listen to our Weekly Podcast. Click here to sign up for our weekly newsletter on curated technology news in the Middle East and Worldwide.

REGISTER NOW | Webinar Event | Security you can bank on – Safeguarding the Middle East’s financial sector

Presented in partnership with security and network specialist Cybereason, the second in the three part webinar series will bring together a panel of experts to discuss how banks and financial institutions are evolving their service offering while simultaneously staying one step ahead of the cyber criminals who seek to bring their operations crashing to the ground.