Facebook Inc. (FB)’s management is working on a new product that increases its business from advertising into commerce. The step is one in a series to bring a surge to its shares. These initiatives are a pretty good indication to buy the beaten shares; even if Facebook’s current reports are in the red.
At the moment, Facebook Inc. (FB) is not in a position to generate hefty revenues from its strong base of users; more than a billion. This year, Facebook will add a little more to its fortunes by 40 cents per month, with expectations of $4.9 million in sales. The Social network is driven by advertisement.
The biggest hurdle for Facebook to grow is usage from mobile, where advertisements are still in its early days.
The new feature has been named Facebook Gifts, and it lets the user send items directly to others by simply using the “gift” button. Still slow in its introduction, the extension will be incorporated on birthdays, weddings and baby arrivals.
As you click the newly installed button, a menu of gifts such as chocolates, flowers, Starbucks Corporation (NASDAQ:SBUX)’s gift cards and many other items will appear. With billions of users, investors will have a potential chance to feature their items permanently.
And the best thing, sending presents to your loved ones will be a lot easier. With just a simple click, you don’t even need to enter the address, as the recipients provide that themselves.
Most attractive, though, is new information, and a potentially revenue generating one: credit-card numbers. Facebook Inc. probably can develop a significant business around gift-giving, but having credit card information provides a new variety of earnings opportunities.
Facebook Inc (NASDAQ:FB) shares in the last session began at $19.20 and attained a maximum of $19.43 throughout the session and finally plummeted 1.69% to $19.32. FB’s shares price fell -5.53% from its 20 days moving average and it earnings per share for this year got a lift of 79.57%. FB’s weekly performance was -1.02%, monthly was at -15.48%, quarterly was recorded as -32.09%.
Starbucks Corporation (NASDAQ:SBUX) shares in the last session slipped -0.84% to $ 45.30. Its shares price fell -7.16% from its 20 days moving average and SBUX earnings per shares for this year got a lift of 30.80%. Its weekly performance was -4.97%, monthly was at -11.30%, quarterly was -9.90% and yearly was 9.18%.
Google Inc (NASDAQ:GOOG)’s stock in the last session slid -0.46% to $ 678.67.