Facebook (FB - Free Report) is developing a new tool called “Your Time on Facebook” that will help users to monitor the time spent on the social-media platform. It will also let users set time limits for using the application.
The move resonates with the company’s focus on improving the time spent on the platform and driving interactive meaningful communication.
Earlier in May, Facebook-owned photo-sharing application Instagram unveiled a usage insights tool showing users how much time they are spending on the platform.
We believe such initiatives will help it in “building a stronger community and a stronger business over the long term”.
Social-Media Addiction — A Growing Concern
Facebook has been facing criticisms from all the corners over not just fake-news issues or data-privacy concerns but also rising anxiety over social-media addiction.
Recently, a top U.K. privacy lawyer stated that social media and gaming companies are facing a multi-million pound lawsuit owing to breach of children’s human rights.
Reportedly, Facebook along with Alphabet’s (GOOGL - Free Report) YouTube, Snap (SNAP - Free Report) -owned Snapchat, as well as Instagram have been criticized for using addictive technology that is disrupting family life.
However, both Facebook and Snapchat denied the allegation saying that their products are designed to encourage positive and meaningful relationship among users both online as well as offline.
Focus on User Protection
Facebook’s CEO Mark Zuckerberg had earlier stated that “Protecting our community is more important than maximizing our profits.”
In the fourth quarter of 2017, time spent on the social platform reduced 50 million hours per day due to changes in news feed and fewer viral videos. However, in spite of that, the average price for Facebook ads jumped 43%.
In order to uphold user protection with the new time-management tool, the social media giant is once again willing to trade off the time spent on the platform. However, the company’s vast user base of 2.2 billion coupled with growing advertising initiatives are unlikely to deter advertisers from choosing the platform.
We therefore believe that such initiatives undertaken by the company will not only help build trust but also enhance its value by safeguarding next generation of users. Moreover, the company is investing a lot on research to improve the well-being of users.
Notably, not only Facebook, but also other tech companies like Google and Apple (AAPL - Free Report) have brought forward time-management tools for consumers.
Facebook currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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