Time and time again, the company, a holding in Jim Cramer's Action Alerts Plus Portfolio, has shown investors that the only way it knows is up. So why was Wall Street so worried when Facebook chief Mark Zuckerberg announced a pivot to more meaningful social interactions on the site?
Sure, it's tough news to swallow for viral video and fake news producers. But for Facebook, it's both socially conscious and incredibly business savvy. A focus on more meaningful social interactions directly translates to more ad dollars. If you've doubted Zuck and his team, you could be one of the dumbest on Wall Street.
Zuckerberg explained it best himself: "When you care about something, you're willing to see ads to experience it. But if you just come across a viral video then you're more likely to skip over it if you see an ad ... that's why I believe this focus on meaningful social interactions is the right one," Zuckerberg said.
That means the companies that advertise on Facebook will have to spend more if they want their target audience to actually see their posts. It costs more to connect on a personal level with your viewership, but it also means those viewers' eyes aren't glazing over while the multi-million-dollar spot plays.
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