Facebook Allows Teens to Share Publicly - Analyst Blog

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Facebook Inc. ( FB ) recently disclosed that it will allow users in the age group of 13 and 17 to make public posts. So far, posts made by teenagers could only be seen by their friends and "friends of friends."

We believe this is a clear cut strategy to combat rivals such as Twitter, which allows teens to share their messages publicly. Moreover, Twitter also lets users' posts their comments anonymously.

Facebook's privacy and public policy manager, Nicky Colaco stated that the step has been taken after several meetings with teenagers who are inclined to make public posts on the social network for reasons such as fundraising, sports promotion and political advocacy.

We believe this strategy by Facebook and other such social media players is aimed at generating more advertising revenues, as marketers are trying to target teenagers through these social networking sites and increase traffic to their websites.

As per recent data available from investment research website investors.com, Facebook constituted about 10.4% of referrals to publishers. Pinterest grabbed the second place with 3.4% of the referrals, whereas Twitter secured the third place with 1.3%.

Apart from Facebook and Twitter, LinkedIn ( LNKD ) and Google 's ( GOOG ) social network Google Plus are also trying to jump the bandwagon. Google's YouTube and LinkedIn recovered from the year-ago quarter. While YouTube witnessed a 53% rise in traffic referrals from the past year, LinkedIn was up 35%.

So, we believe that the current step taken by Facebook will encourage advertisers who can help them win additional business and earn more revenues.

Facebook currently has a Zacks Rank #2 (Buy).



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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: FB , GOOG , LNKD

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