Mark Zuckerberg

  • Facebook made a huge change on Thursday, altering how the service’s news feed works.
  • The news feed — the main page of Facebook — now prioritizes posts from people you know that spark engagement and conversation over posts from brands and publications.
  • Facebook CEO Mark Zuckerberg said he expects the change could result in users spending less time on Facebook.
  • That line could worry investors, and Facebook’s stock was down 4% Friday morning.

Facebook just made a huge change, and investors are spooked. As of Friday morning, Facebook’s stock is down over 4%.

There may be a specific reason for that — CEO Mark Zuckerberg just said that the change its news feed will likely result in Facebook users spending less time using Facebook. “By making these changes, I expect the time people spend on Facebook and some measures of engagement will go down,” Zuck wrote in a Facebook post.

His post, coincidentally, is exactly the kind of status update that Facebook’s big change is going to prioritize.

When you sign on to Facebook, the first thing you see is the news feed: status updates from friends and family, sponsored links, videos from brands or publications you follow, etc.

On Thursday evening, Facebook announced that its news feed was changing. “You can expect to see more from your friends, family and groups,” Zuck said in the announcement. “You’ll see less public content like posts from businesses, brands, and media.”

Facebook News Feed

By de-emphasizing content from brands, and links to publications, Facebook potentially becomes less valuable to said brands and publications. Facebook currently makes money from the advertising revenue generated from ads running alongside posts and videos from brands and publishers.

If the changes cause people to spend less time using Facebook, that’s less time viewing ads. Facebook’s potential for making money Read More Here