Facebook share rose more than 4% on Friday after comments from CEO Mark Zuckerberg on Thursday indicating a shift in his view of Apple’s (AAPL) new update on users’ privacy that could compromise social network ads.
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Zuckerberg struggles with Apple over concerns over personalized ads Facebook (FB) could be hurt by an update to the operating system known as iOS 14 for Apple iPhone and iPad.
For the past few weeks, Facebook has been running an advertising campaign defending personalized ads. Targeted advertising is the key to small business success, it says.
But Zuckerberg changed his mind while being interviewed in a new social networking app called Clubhouse. When asked about Apple, Zuckerberg said: ‘The reality is that I am confident that we can handle the situation well and that we will be in a good position.
“I think it is possible that we will be in an even stronger position if Apple’s changes encourage more businesses to trade on our platforms,” he added.
Each iPhone and iPad has a unique identifier called IDFA. Apple’s upcoming iOS 14 update enables users to disable an app’s ability to track their activities.
But Facebook and others that sell mobile ads rely on this ID to help target ads to users. Advertising accounts for about 98% of Facebook revenue.
Facebook stock: navigate through the changes
Zuckerberg expects small businesses and developers to have a harder time navigating through the changes.
Alphabet (GOOGL), the owner of Google, has been relatively quiet about the change as he introduces his own privacy changes to his Chrome browser. Alphabet also promised to stop tracking individual users.
In addition Twitter (TWTR) and Cut (SNAP) said the change would be good for users’ privacy and could even benefit their business.
Apple viewers expect the changes on iOS 14 to begin soon.
Facebook shares climbed 4.1% on the stock market today, closing at 290.11.
Follow Brian Deagon on Twitter @IBD_BDeagon for more information on technology stocks, analytics and financial markets.
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