After Facebook announced a news feed update on Thursday, its share value declined nearly four percent, before the US market opened on Friday.
The stock value of Facebook closed on Friday with a value of US $ 173.37, lower by 4.4 percent when compared with the stock price on Thursday for US $ 187.77.
Previously, Zuckerberg explains why news feed algorithm changes to uploads on Facebook. Zuckerberg calls his site to prioritize uploads from colleagues and family, compared to uploads from businesses and brands.
However, some have argued that the change is also influenced by Facebook's rumors of desire to neutralize its corporate appraisal, which is believed to refer to a context collapse.
Contrast collapse is rated as a phenomenon due to users stopping sharing a lot of information related to their personal lives on Facebook, so the data that can be used for advertisers who count on Facebook to profit even less diminished.
This news feed change is intended to encourage people to talk more about their personal lives, thereby increasing the commercial value of Facebook.
Meanwhile, the market reportedly reacted negatively to the news feed changes, albeit in a short period of time. Some analysts say this change will have good benefits for Facebook in the long run.
