Mark Zuckerberg announced this morning that Facebook is going to be making significant changes to its social media site. A growing number of Americans are disengaging from the platform because they are being bombarded with ads and auto-play, not to mention the feelings of anxiety and depression.
Facebook’s answer is to feed more content from friends and family and less from advertisers and public sites.
The changes are expected to decrease engagement, but Facebook maintains they will be good for the company long-term.
Bloomberg has more.
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.
“Facebook is already experiencing declines in consumption and the company is responding with these changes today,” Wieser said. “Good on Facebook — they are doing the right thing, long-term. It may not be good for the business in the short term.”
Read more here.
Jeremy Jones, CFA
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