announced a number of new features in its F8 global developer
conference, which reflected its continuing focus on improving
user engagement and monetization on mobile. Shares increased 2.8%
to close at $59.78 on Apr 30 following the announcement.
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The social network announced a mobile ad network called Facebook
Audience Network (FAN), to deliver ads to third-party apps. The
network significantly expands Facebook's total addressable market
Facebook's massive user base and its ability to track personal
details over time, both from its own platform and non-Facebook
apps, make it a formidable force in the mobile ad market. Based
on this ability, Facebook is well position to command premium
mobile ad pricing amid significant competition from Google's
Facebook announced that it is lowering parse pricing, which will
enable developers to built apps at a lower cost. As part of the
new policy, developers will get free access to updated analytics
package. The company also announced a new offline datastore for
parse users, which will help them to access parse in areas with
Facebook introduced App links, which will enable developers to
interconnect mobile apps across diversified mobile platforms
iOS, Google's Android and
Windows Phone. App Links will help users to access content from
within the app.
In order to encourage mobile start-ups, Facebook launched a new
Fbstart program. The company is offering resources and tools from
different partners that include the likes Adobe, appurify,
salesforce desk, Quip and proto.io. The social networking company
also announced that it will continue to support old developer
APIs for two years.
Facebook introduced features that allow users to restrict the
amount of personal information they are willing to share with
third-party mobile apps. The social network also launched
"anonymous login" feature for third-party mobile apps, which will
allow a user to visit the app without divulging personal
information from Facebook.
The company also let users to share content from apps through
Facebook messenger and also introduced a "mobile Like button",
which users can use to like pages or contents of third-party
We note that Facebook's recent acquisition of WhatsApp and Oculus
are long-term growth opportunities. The Internet.org initiative
is also long-term focused. In such a scenario, Facebook's
expanding TAM, improving developer base and focus on user
engagement will help it to drive advertising revenues.
Additionally, robust growth in Instagram and WhatsApp user base,
strategic acquisitions and initiatives such as Internet.org are
Currently, Facebook has a Zacks Rank #2 (Buy).