NEW YORK (TheStreet) -- Facebook (FB) - Get Report said last week that it had overstated how much time on average users were spending watching videos on its social networking platform over the past two years. The company wasn't including videos watched for less than three seconds in the average viewing times. 

Facebook shared these numbers with advertisers over the past two years and continually emphasized to investors that it was focusing on video, noted CNBC's Julia Boorstin on Monday morning's "Squawk Box." However, the metrics did not have an affect on the company's revenue, she noted. 

Cowen and Company and Wells Fargo analysts aren't worried about the affects of this mistake on the company because "ad agencies are focused on the cost per view rather than viewing time," according to Boorstin. "They'll have to see if Facebook's rivals use this to their advantage," she noted. 

"The larger story is for the entire media space," CNBC's Andrew Sorkin said. 

For example, many news organizations placed a greater focus on video over the past few years "because those numbers looked so positive, even though they were completely and utterly wrong," he explained. 

"Are we going to trust parties to self report?" CNBC's Becky Quick asked. 

Facebook does have independent third parties to report numbers, Boorstin noted. Last week, it announced partnerships with even more measurement partners to further open access to its data, she said. 

"I think Facebook has realized that they need to make sure that they're not responsible for the measurement perhaps at all," Boorstin explained. 

Shares of Facebook were lower in mid-morning trading on Monday. 

(Facebookis held in Jim Cramer's charitable trust Action Alerts PLUS. See all of his holding with a free trialhere.)

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 team recommends Facebook as a Buy with a ratings score of A-. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that the team rates.

You can view the full analysis from the report here: FB

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