Facebook (FB) Rises as Instagram Refutes Data...as Does the Research Firm
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Facebook (Nasdaq: FB) is on the move higher this afternoon following earlier weakness on expectations that it's $1 billion investment in Instagram may have blown up.
Earlier today, data from AppData had average daily Instagram users down 25 percent. The research firm attributed this to the revised terms of service (TOS) issued December 17th, which caused a bit of an uproar amongst users.
One point that TheVerge makes this afternoon is that AppData gathers its information from Instagram accounts connected to Facebook accounts. The revised TOS may have put off some users, but many may have just unlinked their Facebook account, which could also account for the drop. Those users may very well still be using the app.
AppData issued this statement to TheVerge:
"AppData reflects only Facebook-connected users of the Instagram app. Though the terms of service change spurred a lot of negative media attention and complaints from users, the decline in Facebook-connected daily active users began closer to Christmas, not immediately after the proposed policy changes. The drop between Dec. 24 and 25 seems likely to be related to the holiday, during which time people are traveling and otherwise have different routines than usual. A number of other apps saw similar trends, including Skype, Pandora, Pinterest and Yelp. The original statement issued by the NY Post was not approved for citation by AppData."
Likewise, Instagram hierarchy said that AppData's measurement isn't a true reflection of the user base.
In any case, Facebook shares are off of lows, now down just 0.4 percent Friday.
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Earlier today, data from AppData had average daily Instagram users down 25 percent. The research firm attributed this to the revised terms of service (TOS) issued December 17th, which caused a bit of an uproar amongst users.
One point that TheVerge makes this afternoon is that AppData gathers its information from Instagram accounts connected to Facebook accounts. The revised TOS may have put off some users, but many may have just unlinked their Facebook account, which could also account for the drop. Those users may very well still be using the app.
AppData issued this statement to TheVerge:
"AppData reflects only Facebook-connected users of the Instagram app. Though the terms of service change spurred a lot of negative media attention and complaints from users, the decline in Facebook-connected daily active users began closer to Christmas, not immediately after the proposed policy changes. The drop between Dec. 24 and 25 seems likely to be related to the holiday, during which time people are traveling and otherwise have different routines than usual. A number of other apps saw similar trends, including Skype, Pandora, Pinterest and Yelp. The original statement issued by the NY Post was not approved for citation by AppData."
Likewise, Instagram hierarchy said that AppData's measurement isn't a true reflection of the user base.
In any case, Facebook shares are off of lows, now down just 0.4 percent Friday.
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