Wednesday is proving to be a busy day for social media investors. Here is a summary of what investors should know.
Facebook Introduces New Features
Facebook (NASDAQ: FB) announced in a blog post that it is now a lot easier for users can now ask for recommendations on places to eat, shop or visit.
The feature, called “Recommendations,” is quite simple. Users write a standard Facebook post asking their friends for advice and can turn on “Recommendations” for the post. Once the feature is switched on, friends can comment on the post with suggestions that is then mapped out and saved in one place to be conveniently viewed.
Suppose a user is looking for a great sushi restaurant in an a new city, the Recommendation feature will offer links to the restaurant’s Facebook page. Restaurants that are signed up with Delivery.com or Slice can even add a “Start Order” button on their Page which allows users to order food directly from Facebook.
Why Twitter’s Investors Should Care About Colin Powell’s Hacked E-mail
Twitter’s (NYSE: TWTR) stock soared during the summer months after the company was believed to have been an acquisition target by several large internet peers.
Salesforce.com (NYSE: CRM) was also considered to be a lead contender to acquire the social media company.
According to The Wall Street Journal, DCLeaks, a group of “hacktivists” that target current and former government officials obtained an e-mail sent by Salesforce’s CEO Marc Benioff to the company’s board of directors which includes former Secretary of State Colin Powell.
The leaked e-mail contained a list of more than a dozen companies that Salesforce was taking a closer look at for a potential acquisition.
Twitter’s name wasn’t among the 14 companies listed.
It is however important to note that the email was dated in May so it is possible that Benioff only took a closer look at acquiring Twitter in the following months. On the other hand, it is possible that Benioff was never really interested in acquiring Twitter and all the media reports were false.
One Wall Street Analyst Turns Less Bearish
According to Benzinga, Blake Harper of Loop Capital Markets upgraded Twitter’s stock rating to Hold from Sell with an unchanged $16 price target.
The logic behind the upgrade is that even if Twitter’s quarterly earnings report disappoints the Street, the seemingly never ending M&A rumors places a floor price on the stock and limits downside.