Facebook (FB) Stock Up, Messenger App to Offer Encryption
NEW YORK (TheStreet) -- Facebook (FB) - Get Report stock is up 0.89% to $116.89 this morning as the company moves to create a privacy function on its Messenger app.
Called "secret conversations," the feature provides end-to-end encryption on certain messages that can only be read on the mobile devices of those users who are communicating. Facebook will begin testing today.
Facebook-owned WhatsApp, another popular messaging mobile application, also offers encryption but at a higher security level. Facebook Messenger's new mode will still give it global appeal, the company hopes.
David Marcus, VP of Messaging Products at Facebook, said that the website's massive network gives it an edge over competitors.
"Because of the scale of our network, I feel like we really have a shot at this," Marcus said, according to the Wall Street Journal. The app has 700 million monthly users as of late 2015.
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Separately, TheStreet Ratings rated this stock as a "buy" with a ratings score of B+.
The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins.
TheStreet Ratings feels its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.
You can view the full analysis from the report here: FB
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.