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Facebook: Investors snub search tool

January 15, 2013: 4:10 PM ET
Click the chart to track Facebook's stock.

Click the chart to track Facebook's stock.

Facebook CEO Mark Zuckerberg announced a new search tool at a highly-anticipated press event Tuesday.

The new feature, dubbed "Graph Search," allows Facebook users to search their own network of connections for people, places, photos and interests that have been shared on Facebook. For example, users will be able to search for "friends who live in my city," "photos of the Eiffel Tower," or "music my friends like."

Facebook first announced the event last week, but was vague in its media invitations, calling for reporters to "Come and see what we're building." But investors appeared to be unimpressed with the announcement. Shares of Facebook (FB) fell 2.8% Tuesday.

In September, while speaking publicly for the first time since Facebook's IPO, Zuckerberg highlighted the company's "big opportunity" in search, noting that users generate a billion searches on Facebook per day.

Prior to Tuesday's event, there was a lot of speculation on StockTwits about the event.

Zuckerberg's big surprise $FB..."I've been wicked short $AAPL"

$FB here is the key if it is a search engine - do you want your FB connections knowing what you search on and what sites you click?

$FB Too many shorts on $FB will provide fuel. Zuckerberg speaks and people respond positively - look at last time - all good for future

im thinkin' its search, it will be big & it will not involve humans sorting. $FB$TWIT

Following the announcement, StockTwits users had even more to say.

$FB search tells you what people actually do, $GOOG tells you what they say they do. Which you gonna trust more?

The jury is out on that one. I need to see how it works before I can pass any judgement.

$FB This is huge for advertisers - WITHOUT A DOUBT and that will bring $$$$ to $FB bottom line

That's the thing. Does Facebook need yet another change to their network? Every time they make a move, the social network gets flooded with disappointed (and often confused) users.

$FB Graph Search will become a stalker's best friend. Zuckerberg must want to creep on his old-Harvard undergrad crush...

Exactly. Ok, maybe it won't become a stalker's BFF, but I've heard numerous stories from real friends who have given up on FB because of cyber stalking. Will this just exacerbate that?

Friends of current employees is a good place to start for recruiting." : Bad for lnkd $LNKD$FB

That's the flip side. It's not always a bad thing and can lead to tighter connections.

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Hibah Yousuf
Hibah Yousuf
Reporter, CNNMoney

Hibah Yousuf is a reporter at CNNMoney, where she covers stocks, bonds, commodities and currencies trading across the globe, as well as corporate earnings and other markets-related news. Prior to joining the site in 2009, she interned at Money Magazine.

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