This week, we saw some significant developments related to Facebook (NASDAQ:FB) & Google (NASDAQ:GOOG), which could impact their shares in the near future. Facebook’s stock is finally showing a recovery after being pummeled post-IPO. This week it also announced a new acquisition. Google also made announcements related to Google+ Hangout features.
Facebook’s stock crashed badly after its public debut due to multiple reasons like NASDAQ’s reported, an over-estimation of investor demand by Facebook’s lead underwriters, a very high float due to many insiders cashing out, and most importantly, concerns over Facebook’s lagging revenue growth due to its inability to figure out how to efficiently monetize its growing mobile audience. However, it has recovered in the last week, and is now almost equal to our Trefis price estimate of $33 for the stock.
It is apparently planning to launch a real-time bidding platform for advertisers, to generate more revenue from its social advertising business. It is also working to improve its mobile ad offerings, and is reportedly close to launching a new location-based mobile advertising product which would allow advertisers to target users based on their real-time location data and check-ins.
It also acquired Face.com, an Israeli face recognition technology startup. It has reportedly acquired Face.com for around $60 million. Face.com specializes in mobile facial recognition and it makes sense for Facebook to acquire it as it could drive user engagement for its photo apps, generating additional monetization opportunities.
This week, Google added yet another feature to Hangouts – YouTube parties. Users can now watch YouTube videos with their friends in a Google+ Hangout and even create and share playlists in real-time.
Google also won shareholder approval for its stock split proposal, which would give its founders increased voting rights and control over Google’s destiny. It also launched its Offers app on the iPhone.
Google also launched Coordinate, a new location based service which can be used to manage mobile workforces. It is available as a web app and on Android, and integrates with Google Maps.