Facebook shares jumped Friday after Mark Zuckerberg reduced the risk the social media giant faces in an upcoming change to Apple’s privacy policy.
“I am confident we will be able to get through the situation,” he said in an interview in Josh Constine’s PressClub Clubhouse room. “We will be in a good position. I think it is possible that we may be in an even stronger position. ”
The stock rose more than 4 percent to $ 290.11 – its biggest one-day percentage gain since November. The stock also reached its highest intraday level since November.
However, the stock is still nearly 5 percent lower than a record closing price of $ 303.91 hit on August 26, the same day that Facebook published a blog post warning of the impact that Apple’s changes have on its would have targeted advertising business.
The issue is a code associated with Apple devices known as Identification for Advertisers, which companies like Facebook use to target users and track the performance of ads. An upcoming update of Apple’s iOS14 operating system, which will launch in early spring, requires users to decide to share the information with developers.
Investors have expressed concern that this change will reduce Facebook’s ability to target ads to these popular consumers, and the social media giant’s stock has struggled as a result.
Zuckerberg’s remarks to PressClub on Friday diminished the value of Apple’s change in revenue.
“Facebook generally does not underestimate the challenges it faces,” Ryan Jacob, manager of the Jacob Internet Fund, told Bloomberg News. “If Facebook says it’s more of a speed bump than an obstacle, it’s encouraging.”