Facebook Catches Up With Twitter, Introduces Clickable Hashtags (FB)

Facebook FB today announced that it plans to introduce clickable hashtags in an effort to step up its presence in real-time public conversations. Twitter is largely credited with creating the hashtag – a symbol used to group words or themes into categories that simplify the search process and make it easier for users join a conversation. “Whether it's talking about a favorite television show, cheering on a hometown sports team or engaging with friends during a breaking news event people on Facebook connect with their friends about what's taking place all over the world,” Facebook Product Manager Greg Lindley said in a blog post on Wednesday. “To date, there has not been a simple way to see the larger view of what's happening or what people are talking about. To bring these conversations more to the forefront, we will be rolling out a series of features that surface some of the interesting discussions people are having about public events, people, and topics. As a first step, we are beginning to roll out hashtags on Facebook.” This announcement comes on the heels of Mark Zuckerberg's painful grilling at the company's shareholder meeting on Tuesday. The 29-year-old CEO was subjected to over half an hour of intense questioning from angry shareholders concerned about the company's dire stock performance. Facebook shares have tanked nearly 40 percent since last year's initial public offering, prompting one shareholder to call the stock a “disaster.” So is Facebook falling behind in innovation and “coolness?” It's clear that Facebook is still dominant in the social media space, but companies like Twitter seem to be developing new, popular features at a faster rate. While Facebook is focused on monetizing the product, are they losing sight of the consumer? Well, two investment brokerages aren't particularly concerned. On May 30, Jefferies and BMO Capital upgraded the stock to Buy and Outperform respectively, while Stifel Nicolaus upgraded the stock to a Buy on June 10, arguing that worries over the waning engagement of younger users were overblown. “While MAU's (monthly active users) have somewhat plateaued due to the law of large numbers, we think there is room for financial upside as we expect marketers will find Facebook's 1B+ users irresistible despite any incremental changes in teen usage habits,” Jefferies analyst Brian Pitz wrote in a research note. Facebook shares are currently losing 1.50 percent on the day from the $24.03 closing price on Tuesday.