Facebook's Catalyst: Next Generation of Maps from Apple, Google
Facebook (NASDAQ: FB) has a $25 handle as of yesterday, and many expect shares to shoot for the teens before too long. That said, the much malaised stock may look at a potential resurgence based on tech space developments unfolding in the coming months.
The key to this assumption is a major reshuffling in the mobile space. Apple is expected to ditch Google (NASDAQ: GOOG) as its iOS map utility and introduce its own three-dimensional mapping technology as part of the upcoming iOS 6. The development carries a great importance because maps are becoming key to the next step in mobile advertising. Facebook is expected to be integrated system-wide in Apple's next generation, and stands to become a major player in Apple's mobile advertising push.
For its part, Google is shooting to preempt Apple by unveiling its own Maps generation today. We are tuned to the new types of map functionality and features. They will not only to what Apple's labs has up its sleeve, but point to the direction the mobile ad space is heading.
We have said before that there is significant potential for Facebook from the implementation of a strong mobile infrastructure, especially when it comes to location-enabled advertisement deployment and metrics capture. While rumors for a proprietary Facebook mobile OS - and even a phone - integration into Apple may be enough of a catalyst in the next 12 months.
FB has just climbed back to the $26 territory after hitting a $25.75 low premarket. Look for an inflection point in the next month when discussion shifts away from the botched IPO and into the outlook for the company's business.
Disclosure: I do not own FB shares currently
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