Report
James Cordwell

Prioritising quality over quantity of engagement

Facebook is changing its newsfeed algorithm to prioritise content from friends, family and groups, along with professional content that sparks discussion. Positioned as an effort to improve the quality of engagement, the company has highlighted that it expects these changes to reduce the quantity of time spent on the network. This will likely raise questions regarding the impact on monetisation, though declines in 'monetisable time' may be relatively modest, and with consensus already conservative and ad pricing likely to offset any further slowdown in ad volume growth, we continue to see opportunities for upside to Street expectations.
Underlying
Facebook Inc. Class A

Facebook is building and engaging products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, and in-home devices. The company's products include: Facebook, which enables people to connect, share, discover, and communicate with each other on mobile devices and personal computers; Instagram, which is a place where people can express themselves through photos, videos, and private messaging, and explore their interests in businesses, creators and communities; Messenger and WhatsApp, which are messaging applications; and Oculus, which connects people through its Oculus virtual reality products.

Provider
Atlantic Equities
Atlantic Equities

Formed in 2003 by an established team from Cazenove, one of the most respected investment banks in the UK, Atlantic Equities conducts and publishes fundamental, bottom up research on mid and large cap US companies.

Atlantic provide order execution through a wide range of DMA products and algorithmic trading suites.

Analysts
James Cordwell

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