Facebook CEO Mark Zuckerberg is selling a wholesome, more friendly version of News Feed — and investors are buying.
The social network closed at an all-time high of $193.09 per share on Thursday, jumping 3.32 percent one day after the 33-year-old exec said the company will continue to tweak the News Feed to “amplify the good.” Facebook’s changes will place less emphasis on viral videos, and look to promote more “meaningful” interactions with family and friends.
“When you see a photo from a friend in News Feed, that’s not just content that makes you smile or laugh. It’s an opportunity to connect with that friend, to reach out to them and remind them that you care about each other,” said Zuckerberg. “That connection is deeply important to us as people.”
Wall Street didn’t love it at first, however. Shares of Facebook were hammered on Wednesday afternoon, falling 4 percent in after-hours trading after Facebook released its Q4 earnings. The company revealed its 1.41 daily users were spending about two minutes less each day on the platform. And for the first time, Facebook saw a drop of 1 million daily users in the U.S., from 185 million to 184 million.
But COO Sheryl Sandberg’s comments pacified investors on the company’s earnings call. In short: less time on Facebook won’t negatively impact its massive ad sales. With Facebook pulling in nearly $13 billion in quarterly revenue with a product in flux, Wall Street’s reaction on Thursday showed that it’s willing to wait and see the results of Zuckerberg’s new game plan.