4 Big Takeaways From Facebook's F8
In a report published Thursday, SunTrust Robinson Humphrey analyst Bob Peck detailed four "big" takeaways from Facebook Inc (NASDAQ: FB)'s F8 event.
1. Messaging Is The New Portal
Peck stated that Facebook has shown that its desktop platform will eventually "morph" into a portal-like service where "everyone starts their day." However, the mobile strategy is different as Messaging is becoming the next generation of portals.
"Consumers start their day checking messages, they are also consuming more and more general news, pictures, and videos," Peck wrote. The analyst continued that the "next logical step" is e-commerce and payments, which Messenger Platform would enable.
The analyst suggested that the e-commerce and Payment opportunity alone could present a more than $2 billion opportunity.
2. Parse Is Attempting To Be The ‘OS' OF The Internet Of Things
Facebook cited that there are more than five billion devices that are connected to the Internet, and this figure is expected to balloon to 25 billion in five years. With over 400,000 developers and 1.4 billion, Peck stated that the Parse technology that helps connect these devices has the potential to make Facebook the "OS" for them.
The Internet of Things touches all areas of the economy and the app entry point and "OS" could further expand Facebook's importance and eCommerce, advertising and payments opportunities.
3. Expanding Facebook's Reach
According to Peck, the functionality of Facebook Audience Network (FAN) combined with LiveRail (now video and display) expands the company's reach off of the platform (similar to Google's AdSense) and enables People Based Marketing. The analyst estimated that FAN represents an approximately $1 billion opportunity for Facebook.
The analyst said that developers he interacted with are "extremely excited" as it also leverages Facebook's "extremely rich" user and targeting data.
4. Spherical Video ‘Paints Picture Of The Future'
Lastly, Peck stated that spherical videos are more indicative of future media content, they are "engaging" and "can be attractive" to professional producers of high quality content.
Moreover, this "ties in well" with Facebook's view of augmented and virtual reality for future growth plans.
Shares are Buy rated with a $90 price target.
Latest Ratings for FB
|Oct 2016||Credit Suisse||Maintains||Outperform|
|Sep 2016||JP Morgan||Maintains||Overweight|
|Sep 2016||Loop Capital||Initiates Coverage on||Buy|
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