- The stock price of Facebook, Inc. (NASDAQ: FB) fell over 3% today. This is why it happened.
The stock price of Facebook, Inc. (NASDAQ: FB) fell over 3% today. Investors are responding negatively to a report from Facebook about how the privacy changes made by Apple in its mobile operating system is continuing to negatively impact advertisers.
Apple’s mobile operating system has a new feature that gives users better control of how their online activity can be tracked by marketers. Essentially, users have the ability to opt-out of advertising tracking activities.
“We’ve heard from many of you that the impact on your advertising investment has been greater than you expected. The cost of achieving your business outcome may have increased and it’s also gotten harder to measure your campaigns on our platform,” wrote Graham Mudd
VP of Product Marketing at Facebook in a company blog post. “In some cases, this is due to underreporting on our part. Our estimate is that in aggregate we are underreporting iOS web conversions by approximately 15%; however there is a broad range for individual advertisers. We believe that real world conversions, like sales and app installs, are higher than what is being reported for many advertisers. We are committed to helping you better measure these outcomes and improve your performance.”
Mudd also noted that during the company’s earnings call in July, they expected increased headwinds from the platform changes. And Mudd revealed that the recent iOS updates are expected to have a “greater impact in the third quarter compared to the second quarter.”
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.