One of the more underutilized marketing tools in the Forex and Binary Options world – Facebook – has recently announced some changes to the way advertisers can engage with potential customers on the social media platform.
The changes have sent Facebook Inc (NASDAQ:FB) shares soaring this week, and we believe should be paid attention to by those advertisers who need to engage clients online.
The following research post by Anyoption analyst Joshua Rodriguez explains what the changes are all about.
Facebook is one of the biggest names in technology and the biggest social network in the world. Now, the company is working to become one of the big names in online retail. Facebook made a big announcement today that clearly got investors excited. So today, we’ll talk about what that announcement was, how the market reacted, and what we can expect to see from Facebook moving forward.
Facebook Looks To Bank On eCommerce
Facebook is already making money in the eCommerce space. However, it’s not very much money. In fact, sales in the eCommerce space only account for less than 2% of Facebook’s overall revenue. Nonetheless, the company intends on changing that. On Monday, Facebook announced that it is working on testing new features for advertisers that are looking to sell products to the social network’s users. These new features will allow businesses to display products for purchases right on their Facebook fan pages. As a result, the social network’s users won’t be redirected to a new page when making a purchase. Instead, they’ll be able to make their purchases right on Facebook. According to Catherine Boyle, an analyst at eMarketer, this is going to be a big income generator for the social network. Here’s what she had to say…
From Facebook’s perspective, they’re addressing a paint point for retailers… They will attract serious ad dollars with this offering.
How Facebook Stock Reacted To The News
If there’s one thing that history tells us about the market, it’s the fact that when good news becomes available surrounding a publicly traded company, we tend to see improvements in the value of that company’s stock. That’s exactly what happened on Monday. At the time of writing this article (2:08 ET), FB was trading at $94.36 per share after a gain of 1.20% so far in the session.
What We Can Expect To See Moving Forward
I believe that Facebook is doing far more than stepping deeper into eCommerce with this play. Instead, they are showing investors that they haven’t lost their innovative touch. One of the big concerns revolving around Facebook has been the fact that they have already saturated the market. As a result, it would be hard for them to grow. However, with new advertising endeavors, the sky is the limit, and investors are realizing that. With that said, the new found optimism surrounding Facebook thanks to their eCommerce play is likely to send the stock climbing. How long the gains will last is anyone’s guess, but for the most part, I’m starting to have a more bullish opinion of what we can expect to see from Facebook.
How To Turn The Trends Into Profits
In the case of Facebook, it will be relatively easy to turn these trends into profit. The simple fact is that we are going to see gains. In fact, I believe that the stock will break the resistance trend at $95.31+ and find a new level of support. With that said, now is the time to start looking for call option opportunities on the stock, at least in the short term. From there, watch the news for more clues as to which direction the stock is likely to move.
The original article can be found on the Anyoption blog.