Facebook could lose £17 billion of its value after announcing shock changes to the site – which will see people actually spend LESS time on it
Shares in the company dropped by more than 4% on Friday, lining them up for its worst financial position in more than three months.
Reuters Mark Zuckerberg announced the shock changes to Facebook on Thursday – but they could lose the company money
Chief executive Mark Zuckerberg declared drastic changes to user’s newsfeeds on Thursday, saying Facebook will start to prioritise posts from friends and family appearing on user’s Newsfeeds, rather than posts from businesses, brands and the media.
But this planned change has sparked fears people will spend less time on the site, leading to its share stock suddenly dropping, Reuters reported.
If the stock closed at the lower level it is currently, then Facebook would stand to lose £17 billion of its market value.
Zuckerberg admitted that the new changes might not pay off at first, but believes it is important users have more “meaningful social interactions.
PA:Press Association The changes affect what content you’ll see on your Newsfeed, and will prioritise posts from friends and family AP:Associated Press Zuckerberg says he expects the changes to initially not be profitable
He said: “By making these changes, I expect the time people spend on Facebook and some measures of engagement will go down.”
“But I also expect the time you do spend on Facebook will be more valuable.
“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.”