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Facebook changes News Feed, investors click on ‘sad’
Posted on 13th January 2018
Shares of Facebook Inc fell more than 4 percent on Friday and were on track for their worst session in more than three months after Chief Executive Mark Zuckerberg announced changes that he said would hit user engagement in the near term. Zuckerberg said late on Thursday the world’s largest social network would adjust its centerpiece News Feed to prioritize what friends and family share, while reducing the amount of non-advertising content from publishers and brands. A warning by Zuckerberg that people could spend less time on Facebook in the short term as a result of the changes sent the company’s stock $8.29 lower to $179.47.

If the stock closes at that level, it would be the biggest one-day decline since September and would shrink the company’s market value by $23 billion, which is more than the total market value of rival Snap Inc, the owner of Snapchat. “There is too much uncertainty relating to the economic impact of Facebook’s pending News Feed changes for us to be comfortable retaining a Buy rating on the stock,” wrote Stifel analyst Scott Devitt in a research note, cutting his recommendation to “hold” from “buy.”

The change announced by Zuckerberg follows criticism that Facebook’s algorithms may have prioritized misleading news and misinformation in people’s feeds, influencing the 2016 American presidential election as well as political discourse in other countries. Facebook said its new ranking system would hurt non-advertising content from publishers and brands, like news stories and viral video posts, but not change the ranking of advertising that has been paid for. That will leave businesses that want publicity on Facebook no choice but to spend more on advertising, and as a result prices will climb, predicted Eric Schiffer, chairman of Reputation Management Consultants, which advises corporate brands on social media.

“They’re definitely going to be required to buy an ad,” Schiffer said. With its stock up 48 percent over the past 12 months, Facebook has been a major driver of a technology rally that has propelled the S&P 500 to record highs. Its revenue is expected by analysts on average to have surged 45 percent in 2017, a rare accomplishment for a company of its size. Some hedge funds used Friday’s drop in Facebook’s stock to bolster their positions, said Joel Kulina, a senior trader at Wedbush.

“Guys were hoping there would be more of a pullback so they could buy more,” Kulina said. “They don’t think there are any real cracks in the Facebook story.” Changes to Facebook’s News Feed may have an impact on major suppliers of news and other content. John Ridding, the chief executive of the Financial Times, warned on Friday that the domination of online advertising revenue by search and social media platforms was putting pressure on media firms.

“The FT welcomes moves to recognize and support trusted and reliable news and analysis. But a sustainable solution to the challenges of the new information ecosystem requires further measures,” he said.

Other Latest News
Fastest bookings: Maruti Suzuki's Swift cross 90,000 units in less than 2 months
Posted on 17th March 2018
MUMBAI: Maruti SuzukiBSE -1.61 %'s premium hatchback Swift is close to earning the tag of the Indian car that logged 100,000 bookings in the shortest time — just a little over two months — trumping compact sedan stablemate ‘Dzire’, which had touched the milestone in 12-14 weeks.

Bookings for the third-generation Swift had opened on January 18. By end of business hours on Friday, its pan-India bookings crossed 90,000 units, according to data shared by Maruti Suzuki, India’s largest passenger carmaker which is the largest volume contributor for Japan’s Suzuki Motor.

Tata Motors may begin exporting Tata Ace to Myanmar through Bangladesh JV
Posted on 17th March 2018
Tata Motors’ joint venture in Bangladesh is considering exports of the small commercial vehicle, Tata Ace to Myanmar and north-east India.

While Tata Motors currently has an assembling plant in Myanmar which has the capability to manufacture small commercial vehicles and the company currently caters to north-east India from its Indian plants, exports from Bangladesh is considered to be logistically more viable for the region and can be cheaper than exports from India.

Sebi wants bourses to charge higher for illiquid stocks
Posted on 17th March 2018
Mumbai: In an effort to discourage the common public from investing in potentially shell companies in the listed space, the Securities and Exchange Board of India (Sebi) wants exchanges to charge higher transaction fees for trading in stocks of firms that are illiquid (thinly-traded) or not held by too many shareholders.

Two persons, including a regulatory official confirmed this.

This big update will change how you use WhatsApp groups; here’s what it is
Posted on 17th March 2018
WhatsApp has begun rolling out a new feature that will change the way you use and interact with the groups. The new feature allows you to add a group description so that the group members know what the group is about. Besides, WhatsApp has introduced one more feature for the groups – you can now search a participant in a group. Moreover, the update also includes an easier way to switch from a voice call to video call by the tap of a button.

After PNB scam, RBI issues corrective framework for PSBs
Posted on 17th March 2018
Amid the multiple scams unearthed recently in the banking sector, the Reserve Bank of India (RBI) has issued a Prompt Corrective Action (PCA) framework to maintain the sound financial health of banks.

The framework facilitates banks in breach of risk thresholds for identified areas of monitoring, such as capital, asset quality (tracked in terms of the net Non-Performing Assets ratio) and profitability, to take corrective measures in a timely manner, in order to restore their financial health.

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