NEW YORK (TheStreet) -- Facebook (FB - Get Report) shares are taking a beating, down 2.41% to $101.44 on Monday as the company received criticism for its 'Safety Check' feature, which was activated during the terrorist attacks in Paris on Friday.
The tool, which was first introduced in October 2014, allows people in the area of the attack to let their loved ones know they are safe. Around 4.1 million people used this feature during and after the Paris attacks.
While many appreciated the 'Safety Check' feature, others heavily criticized Facebook for not activating the tool for other disasters or attacks such as the Beirut bombings, which occurred a day before the Paris tragedy, according to the Wall Street Journal.
Previously, Facebook had turned on the 'Safety Check' option during natural disasters, for instance following earthquakes in Afghanistan, Chile and Nepal.
Responding to these complaints, CEO Mark Zuckerberg stated on his Facebook page, "You are right that there are many other important conflicts in the world. We care about all people equally, and we will work hard to help people suffering in as many of these situations as we can."
Going forward, the tech giant said it plans to activate this feature more frequently.
Separately, TheStreet Ratings team rates FACEBOOK INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
We rate FACEBOOK INC (FB) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. 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, good cash flow from operations, growth in earnings per share and expanding profit margins. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 15.1%. Since the same quarter one year prior, revenues rose by 40.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- FB's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 9.96, which clearly demonstrates the ability to cover short-term cash needs.
- Net operating cash flow has significantly increased by 75.64% to $2,192.00 million when compared to the same quarter last year. In addition, FACEBOOK INC has also vastly surpassed the industry average cash flow growth rate of 3.04%.
- FACEBOOK INC's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, FACEBOOK INC increased its bottom line by earning $1.10 versus $0.59 in the prior year. This year, the market expects an improvement in earnings ($2.17 versus $1.10).
- The gross profit margin for FACEBOOK INC is currently very high, coming in at 94.80%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 19.90% trails the industry average.
- You can view the full analysis from the report here: FB