Meta Platforms' (META) Add Features to Improve Teen Experience

Meta Platforms META recently announced new features aimed at empowering parents and guardians to manage their teens' online experiences. The newly introduced parental supervision tools on Messenger offer parents and guardians’ valuable insights into their teens' messaging activities.

These tools enable parents to monitor the amount of time their teens spend on Messenger and access information about their teen's contacts list, privacy settings, and safety preferences. Importantly, the tools do not grant parents access to the content of their teens' messages, preserving their privacy.

Moreover, Meta has expanded its parental supervision tools on Instagram. As a part of these initiatives, the company is introducing Quiet Mode on Instagram globally.

These features offer parents more visibility into their teens' experiences on the Instagram platform. These updates include notifications to encourage teens to involve their parents in account supervision, information about mutual friends between their teen and other accounts, and customizable notification settings for parents.


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New Features to Meta’s User Base

Meta acknowledges the importance of responsible screen time management for teens. To promote healthy habits, it has implemented features like Take a Break on Instagram and plans to introduce notifications on Facebook after 20 minutes of usage, encouraging users to take breaks and set daily time limits.

The introduction of parental supervision tools on Messenger, testing of messaging privacy features, and implementation of time management prompts and notifications demonstrate Meta's commitment to creating a safer and more controlled environment for teens.

Moreover, to ensure the safety of teens on Instagram, Meta is testing additional features to restrict unwanted interactions. These measures would require individuals to send an invite and obtain permission before messaging someone who doesn't follow them. Meta’s plan to limit initial interactions to text-only is likely to prevent the sharing of inappropriate content.

These privacy-focused initiatives strengthen Meta's reputation as a responsible social media company and could contribute to improved user trust and increased user acquisition in the teenage demographic. These features are expected to drive user engagement and retention, as well as the implications for ad revenues.

Strengthening WhatsApp’s Security Features

Meta has also strengthened the security features of WhatsApp that protect user’s intimate conversations. The new feature allows one to keep a conversation behind a folder that can only be accessed with the owner’s password or biometric. It also automatically hides the conversation details from notifications.

Meta expects to add more options for Chat Lock, including locks for companion devices and creating a custom password for chats.

Meta recently launched a new feature on WhatsApp, which allows users to edit their messages within 15 minutes after they’ve been sent. This feature is ideal for users who want to correct a simple misspelling or add extra context to their message. Edited messages will be marked as edited, making the other user aware of the correction without showing the edit history.

Expanding User Base to Drive Top-Line

Meta's recent initiatives aimed at enhancing parental supervision, messaging privacy, and time management on its platforms demonstrate the company's commitment to prioritizing user safety and well-being.

In first-quarter 2023, Family Daily Active People or DAP, defined as a registered and logged-in user who visited at least one of the Family products (Facebook, Instagram, Messenger or WhatsApp) on a given day, were 3.02 billion, up 5.2% year over year. Family Monthly Active People or MAP increased 4.2% year over year to 3.74 billion.

Advertising revenues (99.3% of Family of Apps revenues) increased 4.1% year over year to $28.10 billion and accounted for 98.1% of first-quarter revenues.

Meta expects total revenues between $29.5 billion and $32 billion for the second quarter of 2023. The Zacks Consensus Estimate for revenues is pegged at $30.80 billion, indicating 6.87% year-over-year growth. The consensus for earnings stands at $2.82 per share, suggesting 14.63% year-over-year growth.

Zacks Rank & Stocks to Consider

Meta currently has a Zacks Rank #2 (Buy).

META shares have outperformed both the Zacks Computer & Technology sector and the Zacks Internet Software industry year to date. While Meta has returned 138.5%, the sector and industry returned 44.2% and 33%, respectively.

NVIDIA NVDA, Palo Alto Networks PANW and BlackLine BL are better-ranked stocks in the broader sector. All three sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of NVIDIA and PANW are up 186.5% and 80.3%, respectively, on a year-to-date basis. However, BL shares have declined 19.1% over the same timeframe.

Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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