Facebook, Inc. FB introduced a redesign to its platform that better emphasizes its groups. The change is part of what Facebook CEO Mark Zuckerberg said is a renewed focus on "making communities as central as friends."
What Happened
Zuckerberg acknowledged in his presentation the social media company doesn't have "the strongest reputation on privacy" and this marks a milestone in changing the way management runs the company.
Groups intend to keep people in touch with either long-distance friends or connect with strangers that have similar interests or passions. Facebook's platform will recommend groups to users based on specific interests.
Some of the new privacy features included in groups include an individual can request an administrator post on their behalf.
Why It's Important
Tigress Financial Partners' Ivan Feinseth said in his daily newsletter Facebook has yet to see any notable slowdown in advertising revenue growth despite concerning media headlines related to privacy. The company's momentum could be fueled by continued investments in artificial intelligence and related technologies to increase the platform's functionality, which in return yields improved monetization.
Facebook's status as being a leading innovator remains unchanged and it stands to continue benefiting from increases in digital advertising spending, the analyst wrote.
What's Next
Feinseth believes Facebook's stock has room for "significant upside" over time and investors should be buyers at current levels.
Facebook's stock closed Tuesday's session at $193.40 per share.
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