Facebook Inc. (FB) recently apologized for its “Year in Review” feature that led some users to revisit some unpleasant happenings from the past year.
“Year in Review” was a computer-generated post that appeared in the News Feed of certain Facebook users in Dec 2014. It was designed to highlight their most popular photos in 2014. Users were then instructed to view their Review and share it. Moreover, the feature came with the tagline "It's been a great year! Thanks for being a part of it".
Problems started when a designer Eric Meyer posted a complaint as his Year in Review included a picture of his six-year-old daughter who had passed away after a battle with brain cancer. Eric Meyer heavily criticized the social media giant for its thoughtless action in his personal blog, which in turn led to widespread criticism.
In order to pacify its users, Facebook recently pleaded apology to bereaved Eric Meyer and thanked him for his review stating that it would enable the company to overcome the shortcomings, going forward.
We believe that the apology from Facebook will help the company to retain its subscriber growth, going forward. We believe that Facebook’s growing mobile user base, Instagram’s increasing popularity, the frequent launch of new products and international expansion will boost the company’s top line and profitability going forward.
While competition from Yahoo (YHOO), Twitter (TWTR), LinkedIn and Google (GOOGL) remains a concern, Facebook is doing rather well. We note that both WhatsApp and Oculus are long-term growth opportunities that Facebook has sunk a ton of cash into. So investors will be watching how it monetizes these assets. But here too we probably need to keep faith because management execution thus far has been superb.
Currently, Facebook has a Zacks Rank #3 (Hold).
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