Shares of Facebook rose on Friday after Mark Zuckerberg downplayed the risk the social media giant faces in an upcoming change to Apple’s privacy policies.
“I’m sure we will be able to overcome that situation,” Josh Constine said in an interview in the PressClub Clubhouse room. “We will be in a good position. I think we may even be in a stronger position. “
The stock rose more than 4 percent to close at $ 290.11, its biggest one-day percentage gain since November. The stock also hit its highest intraday level since November.
However, the stock is still nearly 5 percent below a record closing price of $ 303.91 reached on Aug. 26, the same day Facebook published a blog post that sounded an alarm about it. impact Apple’s changes would have on its targeted advertising business.
The problem is a code linked to Apple devices known as Advertiser Identification, which companies like Facebook use to target users and track ad performance. An upcoming update to Apple’s iOS14 operating system, coming in early spring, will require users to choose to share that information with developers.
Investors have raised concerns that this change will diminish Facebook’s ability to target ads to these particular wanted consumers, and the social media giant’s actions have struggled as a result.
Zuckerberg’s comments to PressClub on Friday downplayed the risk that Apple’s move could pose to its revenue.
“Facebook generally exaggerates the challenges it faces, not underestimates,” Ryan Jacob, manager of the Jacob Internet Fund, told Bloomberg News. “If Facebook says this is more of a hurdle than a hurdle, that would be encouraging.”