Facebook News Feed: Today, Facebook Inc (NASDAQ:FB) announced a redesign of its News Feed. While this may not mean much to some people, those who use the service, day in and day out, are anxious to see if it will change things for the better.
Hedge funds, on the whole, were very bullish on Facebook last quarter. The total size of the funds we track that were invested in the company grew by nearly 40% from Q3; that’s a huge spike (see why it’s always important to pay attention to the smart money).
Let’s face it: if you use Facebook Inc (NASDAQ:FB) you are familiar with the News Feed.
At a news conference at Facebook Inc (NASDAQ:FB) headquarters in Silicon Valley, as noted by The New York Times, CEO Mark Zuckerberg referred to the News Feed feature as a “personalized newspaper” that is more visual and allows users to choose the topics they’re most interested in.
With all this in mind, many people are wondering why the social networking giant needed to make a change. After all, everything seemed to be going fine with the News Feed feature the way it was.
It appears that the company is making changes, such as this one, in an attempt to keep users on the site for a longer period of time. By accomplishing this goal, Facebook Inc (NASDAQ:FB) will have an easier time attracting advertisers while also increasing advertising revenues.
Of course, this leads to one concern as pointed out by the same New York Times article:
“But the adjustments will reflect the tricky balance Facebook faces now that it is a public company: to keep drawing users to the site while not alienating them with more finely targeted advertisements, which is Facebook’s chief source of revenue.”
Changing the News Feed is nothing new for Facebook. This is something the company has done many times over the years, with some updates being better received than others.
What are your thoughts on this latest change by Facebook Inc (NASDAQ:FB)? Share your opinion in the comment section below.
Check back here for more updates on Facebook News Feed.
DISCLOSURE: I have no positions in any stock mentioned.
For more FB news stories, visit the following pages: