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Meta Platforms (META) to Shut Down Facebook News Tab in Europe
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Meta Platforms (META - Free Report) is set to discontinue the dedicated News tab on Facebook in some European countries. The company will stop offering this feature in the United Kingdom, France and Germany by December 2023. This move is aimed at reallocating resources toward more popular content formats, particularly short-form video content.
Meta's decision to discontinue the News tab in Europe reflects a strategic shift away from the news business. Per a recent CNBC report, the move follows Meta’s decision to make news inaccessible on Facebook and Instagram in Canada.
A new law in Canada obligates tech companies like Meta, Apple (AAPL - Free Report) , Microsoft (MSFT - Free Report) and Alphabet (GOOGL - Free Report) to pay content fees to media outlets. These tech giants are also facing regulatory heat in Europe due to the EU’s new Digital Markets Act.
The Facebook News tab debuted in 2019 as a feature designed to provide users with high-quality news content. It was created through partnerships with reputable news organizations to ensure credible news sources.
Meta has stated that its users are not particularly interested in news content. Per its data, the News section makes up less than 3% of what users around the world consume in their Facebook feed.
The company has assured that the changes affecting the Facebook News feature will not alter Meta's products and services in these nations. Users will continue to have access to links to news articles on Facebook.
News publishers in Europe will not lose their access to Facebook Pages accounts where they will be able to post links to their stories and direct people to their websites. News publishers in these countries can still use Meta’s ad system and products like Reel to reach a wider audience and attract traffic to their websites and are not required to share any revenues derived from outbound links on Facebook.
Meta Platforms’ Prospects Appear Bright in 2023
Meta shares have surged 149% year to date, outperforming the Zacks Computer and Technology sector’s return of 50.9% as well as its peers Apple, Microsoft and Alphabet, shares of which have returned 40.8%, 38.8% and 52.4%, respectively.
Meta has been benefiting from strong engagement trends across its apps. Family Daily Active People or DAP, defined as a registered and logged-in user who visited at least one of the Family products (Facebook, Instagram, Messenger and/or WhatsApp) on a given day, were 3.07 billion, up 6.6% year over year in the second quarter of 2023.
Meta is witnessing continued progress in Threads, Reels and Llama 2. The company is leveraging artificial intelligence to recommend Reels content, which is driving traffic on Instagram and Facebook. Upcoming Quest 2 is expected to boost this Zacks Rank #3 (Hold) company’s Metaverse ambitions. You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Meta expects total revenues between $32 billion and $34.5 billion for the third quarter of 2023. Favorable forex is expected to aid year-over-year top-line growth by roughly 3%.
The Zacks Consensus Estimate for third-quarter revenues is pegged at $33.41 billion, indicating 20.55% year-over-year growth.
The consensus mark for third-quarter earnings is pegged at $3.53 per share, up 2.6% over the past 30 days.
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Meta Platforms (META) to Shut Down Facebook News Tab in Europe
Meta Platforms (META - Free Report) is set to discontinue the dedicated News tab on Facebook in some European countries. The company will stop offering this feature in the United Kingdom, France and Germany by December 2023. This move is aimed at reallocating resources toward more popular content formats, particularly short-form video content.
Meta's decision to discontinue the News tab in Europe reflects a strategic shift away from the news business. Per a recent CNBC report, the move follows Meta’s decision to make news inaccessible on Facebook and Instagram in Canada.
A new law in Canada obligates tech companies like Meta, Apple (AAPL - Free Report) , Microsoft (MSFT - Free Report) and Alphabet (GOOGL - Free Report) to pay content fees to media outlets. These tech giants are also facing regulatory heat in Europe due to the EU’s new Digital Markets Act.
The Facebook News tab debuted in 2019 as a feature designed to provide users with high-quality news content. It was created through partnerships with reputable news organizations to ensure credible news sources.
Meta has stated that its users are not particularly interested in news content. Per its data, the News section makes up less than 3% of what users around the world consume in their Facebook feed.
The company has assured that the changes affecting the Facebook News feature will not alter Meta's products and services in these nations. Users will continue to have access to links to news articles on Facebook.
News publishers in Europe will not lose their access to Facebook Pages accounts where they will be able to post links to their stories and direct people to their websites. News publishers in these countries can still use Meta’s ad system and products like Reel to reach a wider audience and attract traffic to their websites and are not required to share any revenues derived from outbound links on Facebook.
Meta Platforms’ Prospects Appear Bright in 2023
Meta shares have surged 149% year to date, outperforming the Zacks Computer and Technology sector’s return of 50.9% as well as its peers Apple, Microsoft and Alphabet, shares of which have returned 40.8%, 38.8% and 52.4%, respectively.
Meta Platforms, Inc. Price and Consensus
Meta Platforms, Inc. price-consensus-chart | Meta Platforms, Inc. Quote
Meta has been benefiting from strong engagement trends across its apps. Family Daily Active People or DAP, defined as a registered and logged-in user who visited at least one of the Family products (Facebook, Instagram, Messenger and/or WhatsApp) on a given day, were 3.07 billion, up 6.6% year over year in the second quarter of 2023.
Meta is witnessing continued progress in Threads, Reels and Llama 2. The company is leveraging artificial intelligence to recommend Reels content, which is driving traffic on Instagram and Facebook. Upcoming Quest 2 is expected to boost this Zacks Rank #3 (Hold) company’s Metaverse ambitions. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Meta expects total revenues between $32 billion and $34.5 billion for the third quarter of 2023. Favorable forex is expected to aid year-over-year top-line growth by roughly 3%.
The Zacks Consensus Estimate for third-quarter revenues is pegged at $33.41 billion, indicating 20.55% year-over-year growth.
The consensus mark for third-quarter earnings is pegged at $3.53 per share, up 2.6% over the past 30 days.