NEW YORK (TheStreet) -- Shares of Facebook (FB) are declining .06% to $80.74 on reports that the company has abandoned plans to build and launch a satellite that would give under served regions in Africa and other continents access to Internet, CNBC.com reports.
The social networking giant had plans to spend as much as $1 billion on a satellite, CNBC.com stated.
The company's action follows Google's (GOOGL) action to pull-back on investing in satellites, as the two companies have been looking at ways to make the web accessible to more people, CNBC.com noted.
So far, both companies have been looking at other ways of reaching a greater audience that wouldn't be as costly as satellites, such as balloons and drones.
Separately, TheStreet Ratings team rates FACEBOOK INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate FACEBOOK INC (FB) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. 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, expanding profit margins, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income."