Facebook is investing in features that are bound to reduce “engagement” as it was measured the old way. The old metric was “time spent”. Now the new metric is time spent “with intention, being inspired and feeling positive.”
Short-term investors saw this and decided that it’s a bad thing – as engagement goes down, so will revenue. And FB stock took a hit. But if we take the long view, we can see how this strategy is like to pay off.
(FB’s revenue model was similarly questioned several years ago when users were moving from Desktop to Mobile. The fear then was that they couldn’t show as many ads on mobile as they could on desktop. But what actually happened is that as the number of ads went down the price of ads went up as there was limited space to show them on mobile.)