Facebook shares have plummeted 4.47 per cent after the company announced it would be making major changes to the way its newsfeed is constructed with more emphasis on social posts such as albums and statuses than articles from news publications.
On January 11 shares closed at US$187.77 on the NYSE and opened on January 13 at US$178.06 but closed higher at US$179.85.
According to Bloomberg, this was the biggest drop in more than a year.
Mark Zuckerberg, CEO at Facebook says, “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. We started making changes in this direction last year, but it will take months for this new focus to make its way through all our products.
“The first changes you’ll see will be in News Feed, where you can expect to see more from your friends, family and groups. 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.”