The social media giant is currently working towards making its video streaming business a better one in order to fight with rivals like Snapchat.
Facebook Inc has been working its way up since the beginning of the social media craze that took over the world more than a decade ago. The firm has managed to score better than the other giants in the industry and continues to grow till date.The media company has always managed to beat rival Twitter Inc in terms of attracting a lot more users towards its network and has outdone itself on a lot of other levels, making sure every company knows that it has now attained the level from where it can rule the social media industry. There is hardly anything that the media firm has not achieved when it comes to beating its rivals and the recent acquisitions of Whatsapp and Instagram made by the media firm shows how it has the control to take over any small company that threatens to become influential on the general audience or tries to dominate them, which is something that Zuckerberg’s firm wishes to continue doing.Through Instagram, Facebook has managed to continue the legacy of uploading pictures on the social media and is working hard towards growing the platform as well, by monetizing it with advertisements. When the social media platform announced that it will be taking over two new startups, namely Instagram and Whatsapp, the analysts in the industry thought that the firm will be using both the new platforms to raise more revenue but so the media company surprised them by delaying the process of monetization which led them to believe that these two projects could end up becoming huge losses for the firm. However, recent reports from the firm suggest that now it is being considered to allow the display of ads on the apps which might start pouring in some revenue into the company’s account. Facebook business also tried to take over Snapchat at some point in time but the acquisition did not materialize. Even though the social media giant has a very successfully high rate of users coming in every day, Snapchat has managed to give the firm some tough competition too. The networking giant seems to be struggling in the video streaming business and its efforts to beat its rival seem not to be working so far.Snapchat reported that it receives around a four billion videos on its platform almost every day which has pretty much startled the media company, as not so surprisingly, the media giant has released a similar number of videos which are uploaded on the site every other day. Snapchat has a smaller user base than Facebook but analysts believe the struggle the media company is facing has become a little too prominent to look over.
The analysts believe that despite the increasing growth of the media company, there are a lot of things that have made them downgrade the firm's stock for near term future.
Facebook stock is one of those kinds which repeatedly receive positive comments from analysts. However, recently a research was carried out by a particular firm which ended up showing results in which it did not really prefer the social networking site and declared it as a stock that it did not exactly give preference to. One thing, on the other hand, should be taken into consideration that the same equity firm has shown downgraded Netflix a few weeks back while the company has received many positive upticks from all the other financial firms.Even though Facebook business has shown massive signs of growing more and more in the future, the analysts at Societe Generale seem to be least bothered. The analysts of the firm have granted a rating of ‘sell’ to the media company despite the growth it has been observing lately. The equity firm is of the opinion that very soon the networking giant will be slowing down on the stock index and will start showing bearish signs which is why such a rating has been granted to it. This ‘sell’ rating is being observed by the analysts since the month of January and they have also shown their concerns over how the investors do not seem to agree to their choice of ratings for the social media company’s stock.Societe Generale has also stated reasons why they believe the stock of the social media platform needs to be downgraded. One of those reasons is that the all the other equity firms are feeding on the fact that Facebook’s ad revenue seems to be rather positive on the index given the 73 percent of total cash revenues being earned through mobile advertisement. However, Generale analysts believe that this figure is too early to determine whether the mobile ad system any successful for the firm or not and have declared it to be rather ‘premature’.The analysts have also informed in their research report that Facebook’s active user consumer time has shown a decline from the past two years which is another reason why they believe the popularity of the firm is going to decrease even more in the coming future. Even though the users of the social media are increasing day by day, the analysts of the firm are of the opinion that by the number of social networking apps that are being introduced every now and then, the media company’s popularity is sure to experience a dip. Furthermore, the fact that the social giant bought Whatsapp for such a huge price is being seen by the analysts in quite a negative manner.
The social media giant is expected to turn out to be stronger on the stock index in the coming time, given the number of ventures it is currently carrying out successfully.
Facebook Inc has recently been covered by analysts who seem to believe that the firm has a strong chance of staying strong on the stock index in the near future. The success that the social media platform has been witnessing since the past couple of years has groped the attention of its rivals in the industry which are still at an arm’s length to reach the position the media firm has managed to obtain.Following the successful first quarter of 2015, the networking giant has been receiving many positive returns in the form of cash which is one of the reasons why the analysts are so bullish about its stock activities. The firm has reportedly been bringing about huge changes in its system and by turning out to be one of the most innovative firms of the media industry; it has managed to grow at an alarming rate.Furthermore, Facebook business has made its success in the industry something that the rivals need to be reckoned with. This is being said due to the companies that it acquired recently which increased its revenue growth by a huge difference. These companies include Instagram and Whatsapp, and both the platforms have been experiencing constant growth for the past couple of years. Through the launch of the Messenger app that the media firm launched some time back, it has secured another position in the field of communication that users prefer using over any other app.According to an analysis made by analysts at Brean Capital, it has been seen that number of smartphone apps that Facebook has so far reported to own seems to be growing more and more, and this has made the firm quite strong. The analysts also believe that currently, the Wall Street analysts are not taking into consideration the full impact the social media company is capable of making on the stock index, and it is to be believed by the analysts at Brean that the firm is being under-estimated by a mile as all the apps it owns are expected to raise quite a lot of revenue for the next quarter.Facebook was also seen to announce a few weeks ago that it widening the ad space of Instagram, making it available for more advertisers now. This step is being taken by the analysts at Brean in quite a positive manner, as this is going to open up a space for the firm to raise even more revenue than it was before from the app. The analysts also predicted that once Whatsapp has a proper user base, the media company will find additional ways to raise revenue out of it too.
Facebook decides to launch Moments- its photo sharing app.
Facebook Inc. the social media giant is constantly innovating in order to acquire more users that ensure growth. The company not only boasts of Facebook as a success story but has other great ventures that are disrupting the market. This includes WhatsApp, Instagram, and Messenger etc. the company constantly wishes to grow and diversify its portfolio therefore the company now rolled out its on photo sharing application that will be equipped with facial recognition technology reports sources.This news was reported by the popular web-based platform, Re/code. The company has now unveiled another breakthrough application known as Moments. The application will make sharing of pictures relative easier since it will use facial recognition technology. The app will examine the complete gallery of pictures for faces so that they locate pictures and making the tedious picture sharing process relatively easier.So once the app is opened, it will preview all the photographs that will be categorized on the basis of events. The time specific data present in the phones makes it easier for the categorization of the picture album/ so now once the app has recognized some individual, it will then ask you to share the picture with them. Also, users of Moments can add friends in case the app can’t locate the user or picture.Facebook has unveiled its app “Moments” in the United States that will work as a companion application to Google’s Android and Apple’s iOS. Moreover, all the pictures can then be saved in a completely separate secured album where the user can also contribute.Facebook is constantly modifying its services so that it can provide users with a more diverse and engaging platform. The new Facebook app, features are playing a significant role in attracting more users to the web-based platform. The company previously also launched a new feature called “Instant Article”. This particular feature allows the consumer to navigate, read complete articles, browse without switching browsers. The idea behind this initiative is to increase the Monthly Average Users (MAUs).Thus, according to recent Facebook news, the Belgian Privacy Commission is also giving a tough time to the company as they have this perception that FB is not really complying with the current privacy legislation. Facebook stocks are also staggering where they were down by 1.01 percent with a trading stock price of $80.71. The company’s stock has increased 1.88 percent this annum.Hence in a nutshell, Facebook’s effort to diversify its services are commendable that will help them attain their target in the times to come.
