By: Stephanie Brown
Facebook Inc. (NASDAQ:FB)’s desire to become a reliable ‘personal newspaper’ for its world-wide user base could mean more trouble for the ailing news media segment. Editorial decisions about what users read will not be decided from a journalistic perspective, but rather from an algorithmic standpoint. In other words, Facebook will target readers with news they want to read, unlike traditional news media, which bombard users with all kinds of news that may be irrelevant to the readers.
The company already became a key news source to millions of people around the world, with over 30% of U.S. citizens relying on it for real-time breaking news. CEO, Mark Zuckerberg, already outlined his desire to have the network’s news feed become a perfect personalized newspaper that everyone in the world can rely on for their news updates.
Relevant, timely and extraordinary are some of the attributes that many are describing Facebook’s news as, enabling it to thrive in the ailing news market. As newspapers cling to their ancient business model with a high degree of rigidity, Facebook is creating and constantly updating its news feed platform in order to make it more personal and user-friendly.
Facebook has especially been successful in configuring its news feed using an algorithm that takes thousands of factors into account. It has the ability to detect what the user’s friends read, giving other users a perfect opportunity of reading what they want to read. The network already has so many engineers as well as data scientist who are constantly working to improve its algorithm.
Facebook traded flatly in Friday’s session and in a narrow range of $1, with less-than-average volume. The stock is currently positioned a tad below its 20-Day EMA of $74.90 and its RSI indicator stands at 42.98.
Sell Facebook Inc. (NASDAQ:FB) below $73.5 for target of $73 and $72.5, with a stop-loss of $73.8.