Mark Zuckerberg has made This particular his goal to “fix” Facebook. at This particular point his fixes may be causing brand new problems for the stock.
Facebook (‘s CEO told investors Wednesday which tweaks made to the content This particular shows users has led to a notable drop inside the amount of time users spend on the social network. )
“In total, we made modifications which reduced time spent on Facebook by roughly 50 million hours every day,” Zuckerberg said in a statement with the company’s fourth quarter earnings report.
The decline is actually said to come via a decision to show fewer viral videos inside the News Feed.
Facebook also reported its first-ever decline in daily users inside the U.S. in addition to Canada. This particular had 184 million daily users in This particular region inside the quarter, down via 185 million inside the prior quarter.
The stock fell 5% in after-hours trading following the report, a rare decline for a company which consistently outpaces Wall Street’s estimates.
Facebook has rattled investors in recent months that has a series of announcements in response the platform’s role in enabling fake news, filter bubbles in addition to foreign meddling inside the U.S. election.
Related: Mark Zuckerberg is actually fighting to save Facebook
This particular month, Facebook announced plans to show users more content via friends inside the News Feed in addition to less via brands in addition to publishers in an effort to boost the well-being of users. In particular, Zuckerberg targeted videos in addition to articles which users consume passively, without commenting or sharing.
Zuckerberg previously said the change could lead to a drop in user engagement in addition to time spent on the platform, nevertheless could ultimately improve the quality of the user experience.
The move raised concerns among investors about the impact on Facebook’s core advertising business. For at This particular point, Facebook continues to be an ad sales juggernaut.
Sales hit nearly $13 billion for the quarter, an increase of 47% via the same period a year earlier. The company at This particular point has 2.13 billion monthly active users in addition to 1.4 billion daily users, in addition to advertisers are eager to reach which massive audience.
Earlier This particular month, Zuckerberg said his personal goal for 2018 is actually “fixing” Facebook’s many problems. He cited the need to “protect our community via abuse in addition to hate, defending against interference by nation states” in addition to “producing sure which time spent on Facebook is actually time well spent.”
In November, he said the company is actually “investing so much in security which This particular will impact our profitability.” which investment includes doubling the number of people who work on safety in addition to security to 20,000.
The announcement came on the same day which executives via Facebook, Google ( in addition to )Twitter ( testified before Congressional hearings into how Russian actors used social media to meddle inside the 2016 presidential election. )
sy88pgw (brand new York) First published January 31, 2018: 5:13 PM ET