‘‘I don’t think it had turned into a crisis, but Facebook was probably seeing some internal data that was telling them they needed to do something,’’ said Greg Sterling, a senior analyst for Opus Research.
Facebook has been struggling to find the right balance between keeping its fun-loving audience happy and selling enough ads to please investors who want the company to accelerate its revenue growth.
Wall Street seems to think the redesigned News Feed might be a step in the right direction. Facebook’s stock gained $1.13, or 4.1 percent, to close Thursday at $28.58. The shares remain 25 percent below the $38 that they fetched in Facebook’s initial public offering last May.
The mobile-friendly redesign of News Feed underscores the company’s intensifying focus on smartphones and tablet computers as more of its users rely on those devices to interact on the social network.
About 23 percent, or $306 million, of Facebook’s advertising revenue came from the mobile market during the final three months of last year.