NEW YORK (TheStreet) -- Shares of Facebook (FB) - Get Report are advancing 1.21% to $119.32 in mid-afternoon trading on Thursday, as the social network partners with technology giant Microsoft (MSFT) to build a subsea cable across the Atlantic Ocean.
The "MAREA" cable will stretch from Bilbao, Spain to Northern Virginia, transporting digital data across 6,600 kilometers of ocean.
It will provide as much as 160 terabits per second of bandwidth. The cable will enable the companies to more easily connect data centers and network hubs throughout the world, thereby ensuring more reliable connections for their customers.
The cable will be operated by Telxius, Telefónica's (TEF) new telecommunications infrastructure company.
Alphabet's (GOOGL) Google unit has similarly invested in two undersea cables that span from the West Coast of the U.S. to Japan, Wired reports. But Microsoft and Facebook are building their own networking infrastructure rather than just leasing bandwidth.
"We're starting to see more of the large Internet content providers looking to build more of their own networks-whether they are leasing dark fiber or laying down new cables to build new routes," Michael Murphy, CEO of telecom consultancy NEF, told Wired. "It makes sense."
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Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of A-.
Facebook's strengths 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 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
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 article's author.