The stock is down 5 percent
Facebook is re-thinking the way it works, and that will have repercussions for users, advertisers and publishers that use the network.
The overhaul, which will first show up in Facebook’s News Feed, will be a “major change”, says Mark Zuckerberg, who says users may end up spending less time on the site.
Wall Street believes him. And for now, Wall Street thinks this is not good news: Facebook shares dropped 5 percent overnight.
Why? Here’s one theory: “There is too much uncertainty relating to the economic impact of Facebook’s pending News Feed changes for us to be comfortable” Stifel analyst Scott Devitt said in a note this morning, when he lowered his rating on the stock from “buy” to a “hold” — even though he thinks “Facebook is doing the right thing for the long-term sustainability of the platform.”
Context: If you bought Facebook shares a week ago, that drop looks pretty scary.
If you bought them a year ago? No problem. You’re still up more than 40 percent.