NEW YORK (TheStreet) -- Shares of Facebook (FB) - Get Report were lower in early-afternoon trading on Friday after the company overestimated key video metrics for viewing time on advertisement videos.
"While this is only one of the many metrics marketers look at, we take any mistake seriously," VP of business and marketing partnerships David Fischer said today in a Facebook post.
For the past two years, the Milpitas, CA-based social media company has been including video views of only three seconds or more in viewing counts, which artificially inflated the average time users spent watching videos.
Facebook disclosed the information a few weeks ago on its "Advertiser Help Center" page.
The mistake could have overestimated average viewing time by between 60% and 80%, ad buying firm Publicis Media said.
Various large ad buyers and marketers are upset with the company over the issue, sources told the Wall Street Journal.
"We want our clients to know that this miscalculation has not and will not going forward have an impact on billing or how media mix models value their Facebook video investments," Fischer noted, later apologizing for the mistake.
Facebook will introduce a new metric to fix the issue.
More than 19.21 million shares of Facebook have traded so far today vs. the 30-day average volume of 16.13 million.
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Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "buy" with a ratings score of A-.
The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.
You can view the full analysis from the report here: FB