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2 Ways Facebook Stock Is Improving Engagement

When social network companies like Facebook (FB) release their financial figures, after the financial info itself, investors don’t want to walk away without knowing the periodic active users data.

2 Ways Facebook Stock Is Improving Engagement (FB)

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Why? Well, the simple truth is that the higher a social network’s periodic active users, the higher the chances that it can make more bucks, as the business basically depends on how big your active user base is.

So when we combine the size of a social network’s active users base with how creative and effective the company — Facebook stock in this case — can be in monetizing its user base, we can come up with a valid theory of how the company will fare.

And to have a sense of the direction its periodic active user data could be heading, a good place to look is the effort the company is making to engage its users. After all, the more interesting and valuable users find a platform, the more time they’d spend on it – i.e. more engagement.

That bit of background was just to make you appreciate the efforts Facebook stock is making to improve engagement on its platform.

Helping Users After a Relationship Ends

On Nov. 19, FB stock announced that it is testing new tools that allow users manage the way they interact with their exes. This would include options to see less of their ex’s name and profile when they are on Facebook. It would also include options to limit what their exes can see.

Until this update, users who have gone through breakups have definitely contributed in some way to reducing the active user growth of the Facebook platform — no matter how small, according to David Becker, Chief Analyst of Trade-24. Blocking someone is an extreme action, one that most people wouldn’t think about just after a breakup. So people who have gone through breakups will just use less of Facebook — or social media as a whole — altogether.

The fact that this option is offered during the time a user is changing their relationship status would make it effective, hence, keeping engagement up a notch in its own little way.

Facebook Giving You a Desktop Feel on Mobile

Admit it, you enjoy using Facebook on desktop more than on mobile.

With this new update, you might just feel more comfortable accessing Facebook on mobile. At the end of September, Facebook stock unveiled new updates aimed at improving how Facebook profiles are displayed on mobile devices.

Facebook stock also wants to give users a bit more power in letting their friends in on special moments in their lives by allowing users to capture very short videos that tell the stories of what they’re up to at the moment and use them as their profile picture.

The update also includes a feature that lets Facebook users set up temporary profile pictures that revert to a previous profile picture at a set time. This feature was most recently made popular by the Paris attack, during which Facebook users were able to place a transparent French flag on their original profile pictures temporarily.

Part of the update also includes giving users the power to arrange their profile the way they want. In other words, Facebook profiles don’t have to look generic anymore. Users can choose what to display on their profiles — and in what order.

This too will make users more interested in spending more time on Facebook.

Takeaway for FB Stock

One might argue, and rightly so, that these little improvements can’t have huge improvement on engagement. However, as Steve Jobs would think, these moves represent tiny dots in business, which would one day all connect to make a huge positive impact.

As a whole, I believe Facebook stock is on the right track to always make users comfortable on its platform. At end of the day, all of these would contribute in helping to convince advertisers that Facebook is the right place for them to connect with their prospects.

Combine this with the other growth projects that Facebook is working on, as I discussed in a previous article, and you won’t be wrong to own Facebook stock for the long haul.

As of this writing, Craig Adeyanju did not hold a position in any of the aforementioned securities.

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