The stock price of Facebook Inc (FB) opened by dropping over 2.24% from the close on Tuesday. The stock shows signs of recovery in the late morning trading session today. Since the close last Thursday, the stock has slipped by over 5.64%. The stock closed at $117.20 on Tuesday.
The California based company is an American for-profit corporation and online social media and social networking service. The Facebook website was launched on February 4, 2004, by Mark Zuckerberg, along with fellow Harvard College students and roommates, Eduardo Saverin, Andrew McCollum, Dustin Moskovitz, and Chris Hughes.
The founders had initially limited the website’s membership to Harvard students; however, later they expanded it to higher education institutions in the Boston area, the Ivy League schools, and Stanford University. Facebook gradually added support for students at various other universities, and eventually to high school students as well. Since 2006, anyone age 13 and older has been allowed to become a registered user of Facebook, though variations exist in the minimum age requirement, depending on applicable local laws. The Facebook name comes from the face book directories often given to United States university students.
Facebook is announcing three big updates to its advertising measurement offering, in the wake of the high-profile error in the way the site exaggerated video views. Carolyn Everson, Facebook’s ads boss, informed its agency partners on Tuesday of the changes via email, which are due to be officially announced later on Wednesday. Those updates are; The launch of a Measurement Council, Additional third-party verification measures and the introduction of a “Metrics FYI” blog series.
In the email to agencies, Everson explains that Facebook has conducted a review of more than 220 of its metrics and that it “did find a handful of bugs.” “Some are overstated, some are understated, but most importantly, none are billable metrics,” Everson writes in the email. This has come after Everson said on stage at the Advertising Week New York event in September that the company “should have just said in public” it had found the video view error, rather than just calling its clients. “Our promise is we will and need to do better,” Everson said.
Meanwhile, Facebook has moved to restrict ads on fake news sites. The issue has provoked a fierce debate within Facebook especially, with Chief Executive Mark Zuckerberg insisting twice in recent days that the site had no role in influencing the election.
Facebook’s steps are limited to its ad policies, and do not target fake news sites shared by users on their news feeds. “We do not integrate or display ads in apps or sites containing content that is illegal, misleading or deceptive, which includes fake news,” Facebook said in a statement, adding that it will continue to vet publishers to ensure compliance.
Our analysts have given a “HOLD” rating to Facebook’s stock. Despite today’s fall, there is a significant chance of this stock going up after its recent performance. Although it shows great potential, however due to the fluctuation, this is not the stock where you want to go all in on.