This Day On The Street
Continue to site right-arrow
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!

How Facebook Could Overtake Google

Stocks in this article: FB GOOG AAPL SCOR

Right now, Google is only giving links to apps on Android-based phones, but it's possible, and highly probable, that Google's initiative will come to the iPhone as well, according to an article in The Wall Street Journal. The iPhone is the most dominant smartphone in the United States, according to recently released data from ComScore (SCOR), accounting for 41.6% of smartphone subscribers.

Facebook appears not only to be doing well with its mobile install ads, but its acquisition strategy seems to be starting to pay off, as brands realize the power of Facebook, Instagram, and potentially WhatsApp down the line.

Sheridan notes that the recent global partnership with Mondelez (MDLZ) allows Mondelez to "opt into Facebook's beta-testing programs, access to research and capability building through immersion days in priority markets."

Outside of that is the recent Omnicom deal with Instagram, which Sheridan noted, per AdAge, was $100 million. TheStreet reported the deal was not valued at $100 million, with a source close to the situation labeling the price tag as inaccurate. Bloomberg later reported the value of the deal being worth $50 million.

When Facebook bought Instagram for nearly $730 million in 2012 (the reported price was $1 billion, but it included stock which subsequently fell), many questioned why Facebook CEO Mark Zuckerberg was spending such a large amount of money, but the purchase seems to have been the right move. When Facebook bought Instagram, it only had around 15 million users, and now has over 150 million, according to the most recent statistics on its blog.

The world is increasingly going mobile, and much of that time is spent inside apps, and not the mobile web. According to research firm Flurry Analytics, "...86% of time spent on mobile devices is spent inside applications, with just 14% left for the mobile web." Flurry notes that in 2014 marketers are expected to spend $2.4 billion in just the U.S. to get their apps noticed.

With mobile devices (tablets, smartphones and eventually wearables) becoming ever more prevalent, search behavior is changing. According to Flurry, "[t]he de-facto behavior in mobile is to launch an app (previously installed on the device) and enjoy the comprehensive experience offered within it. You are rarely, if ever, linked out to a mobile webpage from an app or sent to another app. Each experience is essentially an island unto itself, completely reliant on the consumer to come ashore."

Google is feverishly working to maintain its dominant position in mobile, and keep its position with its lucrative advertising and search business, which allows it to fund other ventures, including Google Glass, Project Loon, driverless cars and other projects. However, it seems like Facebook is fast closing in on Google's dominance, as the world goes mobile.

Also See: Here's What Google Is Working on Next

--Written by Chris Ciaccia in New York

>Contact by Email.

per AdAge

2 of 2

Select the service that is right for you!

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 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

Brokerage Partners

Rates from

  • 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