This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
TheStreet Open House

Facebook Graph Search: First Impressions (Update 1)

Stocks in this article: FBMSFTGOOGYELP

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), 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: tips@thestreet.com

2 of 2

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 16,805.41 +127.51 0.76%
S&P 500 1,964.58 +13.76 0.71%
NASDAQ 4,483.7150 +30.9230 0.69%

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