Facebook Inc (NASDAQ:FB) Stabilizes

tags: FB

After dropping in two consecutive sessions in the wake of the Brexit vote in the UK and bumping into the edge of oversold territory for the first time in six months, Facebook Inc (NASDAQ:FB) recovered in yesterday’s session. The stock put on 3.7% over the course of the last session, climbing back to $112 per share.

Facebook has been making headlines with its recent shifting stance on how the platform recommends new friends to its users. Initial reports claimed that Facebook used phone location to suggest friends from your immediate vicinity. This would be an obvious issue and could potentially lead to some unpleasant or embarrassing situations. Fusion reported that a FB spokesperson originally confirmed that location “contributed” to recommendations.

A few hours later the company made a U-turn and stated that friend suggestions are actually not based on location. A second slight change of stance followed that finally cemented the company’s position on the matter. It turned out Facebook ran a small-scale, temporary test using geolocation to recommend friends but this was scrapped and was never pushed live to the general public.

In other recent news, Facebook’s proposed stock split has been approved, which is no wonder, considering founder and CEO Zuckerberg holds 60% of the company’s voting shares. The plan is to have a 3-for-1 stock split together with the designation of a new Class C non-voting stock. This essentially allows Zuckerberg to donate shares to projects such as the Chan Zuckerberg Initiative, while retaining control over the company.

It doesn’t seem like the market is exactly perturbed by this course of things. It seems investors have sufficient faith in Facebook and Zuckerberh and are loving what he’s doing. However, MarketWatch reports of a legal complaint filed by a certain Michael Kelly, chairman of McCarter & English LLP, which seeks class-action status, and mentions how Google had to delay a similar split due to a similar lawsuit.