Facebook cleanup: Hurt the stock, help the world?

July 27, 2018 - 3:43 pm

NEW YORK (AP) — It's been a rough year for Facebook and its investors. Questions of data privacy, fake news proliferation and user growth have dogged the company.

Now, it is investing heavily on fixing those problems. Not everyone is convinced of the solutions — but if you take Facebook at its word, the changes it plans will ultimately make the social media service better for its 2.2 billion users.

For Facebook, the investment is not just about catering to users; it's also an act of self-preservation.

If trust in the platform erodes, so too does the company's user base as well as the advertisers who pay big money to access eyeballs.

Facebook's shares tanked 19 percent the day after it revealed that user growth has slowed. But CEO Mark Zuckerberg says the larger fixes are worth it.

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