Last week, Facebook Inc (NASDAQ: FB) rolled out a new platform dubbed Facebook Shops to make selling easier for small businesses and help them fetch their second wind after the coronavirus crisis. Facebook Shops feature seems to be up-and-coming and may even leave behind Amazon‘s online business. After introducing the platform, Facebook (FB) stock rose and reached all-time high closing price of $234.91 on May 22.
Facebook Shops to Brighten Shopping Experience
According to Mark Zuckerberg‘s post, Facebook Shops are free and easy to create. Initially, shops will appear on Facebook and Instagram accounts, later, on Messenger and WhatsApp. Besides, in the near future Shops will use Facebook’s AI and augmented reality technologies to ensure better shopping experiences.
“I think this particularly important right now because so many small businesses are moving online to deal with the economic fallout from Covid-19. As people are being told to stay home, physical storefronts are having a hard time staying open and millions of people are losing their jobs. I’ve been personally working with our teams on Facebook Shops every day for the last couple of months so we could accelerate launching it to small businesses who could use tools like this now.”
Facebook’s partners on the initiative include Shopify, BigCommerce, WooCommerce, Channel Advisor, CedCommerce, Cafe24, Tienda Nube, and Feedonomics.
Some analysts say Facebook’s new feature not only diversifies the networking giant’s activity but also gives it a chance to build a huge e-commerce business that will compete with Amazon.com Inc (NASDAQ: AMZN) and smaller retailers like eBay. Facebook Shops have several competitive advantages. Firstly, they are free of charges for all merchants. Secondly, Facebook has coverage: its daily number of users reaches 1,700 million people. Finally, the Facebook Shops platform can provide discovery for those who have no idea of what exactly they want to buy or just want to browse.
Facebook Shop does not mean that Amazon’s online store will be worthless. But it will be not as easy to profit from the market as it used to be.
Facebook (FB) Stock Performance
Facebook stock has been in the green lately. On Friday, it hit a new all-time high at the close, ending the session at $234.91. After hours, FB shares slightly declined by 0.01%. The market cap makes up as much as $669.28 billion.
The annual Facebook stock’s change is 14.45%, and analysts are turning bullish over FB shares’ move. Some of the industry experts say that the company is getting closer to its one-trillion dollar valuation.