This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Facebook Ramps Up E-Commerce With Gift Cards

NEW YORK (TheStreet) -- A day after reporting fourth-quarter results, Facebook (FB) ramped up its e-commerce efforts, introducing its own gift cards.

With the Facebook Card, the social networker's looking to increase revenue outside of advertising. The cards are plastic gift cards that work at a number of retailers, as opposed to traditional gift cards that work in one place. Facebook is partnering with Discover Financial Services (DFS) on the cards.

The initial stores in the program are Jamba Juice (JMBA), Olive Garden, Sephora and Target (TGT).

From the blog post:

Here's how it works:

First, select a gift for your friend from the Gift Cards & Digital category.

Next, choose a value and complete your purchase. Your friend will be notified instantly about your gift, and will receive a Facebook Card in the mail a few days later. As soon as it arrives, your friend can use the card at the retailer you've chosen for the amount you've gifted.

Facebook Cards are reusable. After you've received a card, the next time you get a Facebook Card gift, it will instantly be added to your existing card. Your card can hold multiple gift balances, and each balance is dedicated to the retailer associated with the gift. For example, you might have gift balances of $100 at Sephora, $75 at Target, $50 at Olive Garden, and $8.25 at Jamba Juice.

With this announcement, Facebook is taking on Visa (V), MasterCard (MA) and American Express (AXP), which also offer pre-paid gift cards that work at various stores.

Facebook previously announced Gifts, allowing users to send gifts, mostly in smaller denominations, to their Facebook friends.

During the fourth quarter, Facebook's payments and other fee revenue was $256 million, which was four months' worth of revenue for accounting reasons. Adjusting for the extra month, payments revenue was essentially flat. Gifts contributed a nominal amount to this, the company said on the earnings call.

Overall, the social-networking giant reported non-GAAP earnings of 17 cents per share on $1.585 billion in revenue, as revenue jumped 40%. Revenue from advertising was up 41% to $1.33 billion, 84% of total revenue. Mobile revenue represented 23% of advertising revenue in the fourth quarter, up from 14% in the third quarter.

Shares of Facebook dipped 1.06% to $30.91 in early afternoon trading.

--Written by Chris Ciaccia in New York

>Contact by Email.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,001.22 -38.27 -0.22%
S&P 500 1,988.40 -3.97 -0.20%
NASDAQ 4,538.5510 +6.4470 0.14%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs