Facebook vs Snap: The Social Media Players Battling on This Technology
FB Stock to Gain in This Facebook vs Snap Battle
BUZ INVESTORS Facebook vs Snap (NASDAQ:FB) has done it again! On the first day of F8—the company’s annual developer conference—Facebook CEO Mark Zuckerberg launched a new augmented reality platform and the company announced new products, which clearly showed how the social networking giant will continue to be the leader in the coming years. Facebook stock closed at $140.96 on Tuesday and is poised to go higher.
Snap Inc (NYSE:SNAP) also was not far behind in showcasing its AR efforts on Tuesday. The company introduced new “World Lenses,” which was another way to use its “Lenses.” Snap stock also jumped about three percent on Tuesday to close at $20.55. However, the market clearly sees more potential in Facebook’s AR/VR products and this is likely to hit Snap shares. (Source: “Introducing New World Lenses,” YouTube, April 18, 2017.)
Zuckerberg was rattled by the growing popularity of “Snapchat,” the app that heavily used augmented reality to create new experiences for its users. He not only copied most of the features of Snapchat for Facebook products, but also made “Instagram,” another copy of Snapchat. However, the company made use of these features better than Snap, and today, its photo-sharing app boasts of more subscribers and higher growth.
Facebook vs Snap: The Battle for AR Dominance
Facebook had bought the maker of VR headsets,Oculus VR, about three years back for about $2.0 billion because Zuckerberg believed virtual reality to be the next computing platform and a high potential area for Facebook. It could be used not just for gaming, but also experiencing live events, being in a consultation with a doctor, and many more such experiences, if users could just wear these headsets in the comfort of their homes.
FB stock investors are excited by the prospects of this vision. But Snap is also not likely to give up its hold on the AR/VR market that is likely to grow by leaps and bounds in the coming years.
It was reported last December that Snap has acquired Cimagine Media, an AR firm that specializes in computer vision, real-time image processing, international marketing etc. But the most important fact is that it aims to help retailers benefit from the potential of AR technology. This augmented commerce feature may result in Snapchat becoming a popular platform for shopping for the users. (Source: “Snap reportedly acquired augmented reality startup Cimagine Media for up to $40 million,” VentureBeat, December 24, 2016.)
Facebook vs Snap: The Battle for Ad Dollars Would Be Tough for Snap Stock
Given the fact that Facebook has about two billion users and together with Google parent Alphabet Inc (NASDAQ:GOOG), commands more than 50% of the digital advertising market, Snap Inc would always be third in line for a long time to come.
Richard Dambrosi (JADTECNIC) Has Been Sharing FOREX INVESTORS ANALYSIS FORECAST since 2011. Editors and Founder of InvestorsBuz.com, has a passion for Forex Social Sharing analysis and Market Trends Such as Self Driving Cars, Electric Cars, Medical Marijuana, 3d printing and Cloud computing, Refers to Readers as BUZ INVESTORS.