Facebook (FB) Stock Woes: As FB Stock Recovers, New Privacy Concerns Emerge
As Facebook (FB) recovers from a disastrous IPO, with its third consecutive day of gains, increasing $1.40 (4.7%) to close at $31.41 (down 17% from the initial price of $38), the social network is facing fresh privacy concerns from users following its acquisition of facial recognition technology company Face.com for $100 million.
Facebook’s acquisition of the Israeli company, one of its long-term vendors, will make easier for users to “tag” their photos by identifying faces of people even when lighting is poor. The acquisition makes sense, since Facebook's users love to share pictures and the company recently acquired photo-sharing application Instagram, and launched an additional photo application, “Camera.,” shortly afterward.
The move is reassuring investors who have been concerned about Facebook’s ability to keep increasing its revenue and capitalize on its growing mobile audience. However, as Facebook acquires companies and consolidates online products and services under one big tent, new privacy concerns are emerging among its users.
While people will be able to find, identify and tag their friends in real-time (even in poorly lit places) and publish that information on the internet, some people are just not interested in having their privacy violated that way. That’s why Facebook has to delineate clear and concise privacy guidelines so its users can protect their privacies and identities.
The new facial recognition technology will also benefit businesses by making them able to monitor how, when and where their products and services are being talked about, promoted and – more importantly – by whom.