This Day On The Street
Continue to site
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

Facebook Graph Search: First Impressions (Update 1)

Topeka Capital Markets analyst Victor Anthony thinks that Facebook will eventually make money from Graph Search, but not right now.

"Missing from the presentation was a monetization component of the social search engine, and this is likely the key reason why the stock has pared back recent gains (along with a sell-the-news trade)," he wrote, in a note. "We caution investors not to take this short-sighted view as this is just the beginning stages of what we believe will be a huge monetization lever for Facebook. We have stated previously that we believe a social search engine with a full monetization model would be worth $7-$8 per share to Facebook."

The analyst rates Facebook shares "buy."

Graph Search will eventually be a business; don't let Zuckerberg's words fool you. It has been developed to generate significant revenue over time, and could make inroads into Google's dominant search business as it evolves and grows. When asked about the relationship with Microsoft (Bing powers the search function that Graph Search can't find), Mark was quick to note that the two companies have a great relationship. "We have a great partnership with Microsoft," he said. "We continue to work with Microsoft to make Bing better, and they're working with us to make Graph Search better."

This is a direct shot at Google, especially as Google continues to add Google+ results to users searches, to try and make it more social. Investors are also taking this as a shot against Yelp (YELP - Get Report), which helps users find places to eat, shop, and more, based on recommendations and reviews. Yelp's stock traded lower on Facebook's news. Facebook's hoping that by giving you access to your friends' 'likes' and recommendations, search will become more social, and will give you more access to ideas and suggestions to make your offline life more fulfilling.

Just don't expect to see any revenue from this venture for a while.

-- Written by Chris Ciaccia in San Francisco

>Contact by Email.

>To submit a news tip, send an email to:
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
FB $99.54 0.00%
GOOG $678.11 0.00%
MSFT $49.28 0.00%
YELP $15.69 0.00%
AAPL $94.99 0.00%


Chart of I:DJI
DOW 16,014.38 -12.67 -0.08%
S&P 500 1,852.21 -1.23 -0.07%
NASDAQ 4,268.7630 -14.99 -0.35%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs