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Facebook's New Amazon Feature

Facebook's New Amazon Feature
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Facebook (NASDAQ: FB) recently introduced a new feature that may have been inspired by Twitter (NYSE: TWTR). Now the company is exploring e-commerce with a Buy button that might have been inspired by Amazon (NASDAQ: AMZN).

The company's description is pretty straightforward: "With this feature, people on desktop or mobile can click the 'Buy' call-to-action button on ads and Page posts to purchase a product directly from a business, without leaving Facebook."

Facebook is not the only social network that wants its users to spend money. Twitter also introduced a Buy Now button in June.

Related Link: Is Facebook's 'Paper' A Game-Changing iPhone App?

Revenue Streams

"I think Internet businesses are slowing, and therefore they're looking at other people's revenue stream to help theirs," Needham & Co. analyst Laura Martin told Benzinga. "I think [it's] everybody doing everything. Google and Facebook are both entering e-commerce."

Martin thinks that these companies should continue to experiment, but she is confident video will prove to be the next big thing for Facebook.

"I think what we're gonna hear this week is all about video," she said. "I think they have a lot of optionality with their reach, but I think their main focus is video next, if you're talking about monetization."

Facebook is scheduled to report its second quarter earnings after the market close on Wednesday.

"They may dabble in these other things, but I don't think that's going to be their main focus," Martin added.

No Original Content

Yahoo and other Internet giants are actively searching for original content. Facebook did the same and launched its first social series, Aim High, in 2011. The series was later picked up by Crackle.

Since then, Facebook has not done much in the realm of original content. Martin does not expect that to change anytime soon.

"I don't think they'll do content," she said. "I certainly do not. Everything is about social. These guys haven't shown any indication [that] they'll do stuff that isn't social."

Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.

Posted-In: Buy button Buy Now button comments Facebook Laura Martin Needham & Co.Analyst Color Tech Best of Benzinga


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