Facebook shares skyrocketed Friday after Mark Zuckerberg mitigated the risk facing the social media giant in an upcoming change to Apple’s privacy policy.
“I am confident we will be able to get through that 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 are even in a stronger position. “
The stock was up 4 percent to close at $ 290.11 – the largest 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 on August 26, the same day Facebook released a blog post raising the alarm about the impact Apple’s changes would have on its targeted advertising efforts.
It is a code associated with Apple devices, known as Identifier for Advertisers, that companies such as Facebook use to target users and track ad performance. An upcoming update to Apple’s iOS14 operating system, due out in early spring, will require users to choose to share that information with developers.
Investors have expressed concern that this change will diminish Facebook’s ability to target ads to these particular sought-after consumers, and the social media giant’s stock is struggling as a result.
Zuckerberg’s comments to PressClub Friday downplayed how much risk Apple’s change could mean to its earnings.
“Facebook generally exaggerates, does not underestimate the challenges it faces,” Ryan Jacob, manager of the Jacob Internet Fund told Bloomberg News. “If Facebook says this is more of a speed bump than a hurdle, it would be encouraging.”