The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.
NEW YORK (
) -- The latest slew of changes made on
has seemingly not gone down well with the public, with a lot of users complaining both on Facebook as well as on other social forums such as
. However, the social networking giant has a history of making radical changes to its website format, and it's expected that users will take the recent changes in stride. Facebook is the leader in the online display advertising market, with competitors such as
Facebook CEO Mark Zuckerberg
We currently value
Facebook at around $45 billion.
Although it's facing ire from the Facebook community, the recent changes on Facebook are on the right track when it comes to competing against other players in social media such as Twitter and Google+. Grouping friends into categories is much like the Google+ "Circles" feature, which enables users to classify and categorize their social circles and share information accordingly helps drive engagement and increase communication.
Additionally, the real-time ticker feed is easily reminiscent of Twitter, and looks like Facebook is testing a new "Subscribe" feature that echoes Twitter's "Follow" system. You can now subscribe to pages to receive updates and individuals can allow their profiles to be subscribed to by the public.
These seemingly small changes are huge in terms of re-slicing the privacy walls around one's friends as well as what and how users share information.
Considering that people spend more time on Facebook than the next four websites combined, the abrupt changes might see hostile reactions at first. However, it is a smart move from Facebook's side given the obvious threat of web giants like Google in the social networking space. Users can expect even
more changes coming from Facebook's developers conference f8 that took place recently.
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This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.