Will Facebook Inc (FB) become the Amazon.com, Inc. (AMZN) of Big Data?

Page 1 of 2

Even though it is best known as an on-line retailer, Amazon.com, Inc (NASDAQ:AMZN) is a major player in the cloud.  With its new Graph Search, Facebook Inc (NASDAQ:FB), the social media giant, could become just as prominent in Big Data.  For Foolish investors, that could provide a tremendous boost for the share price of Facebook Inc (NASDAQ:FB).

The cloud is the provision of computing services (hardware and software) over a network, generally the Internet.  Big Data is the term for utilizing the massive amounts of information that exceed the capabilities of traditional software packages to capture, manage, and process for commercial purposes.  From an article in USA Today about Big Data:

Facebook Inc (NASDAQ:FB)Welcome to your everyday world of ‘Big Data,’ the infinite sea of facts, products, books, maps, conversations, references, opinions, trends, videos, advertisements, surveys — all of the sense and nonsense that is literally at your fingertips, 24/7, everyday from now on. Eric Schmidt, Google Inc (NASDAQ:GOOG)’s executive chairman, estimates that humans now create in two days the same amount of data that it took from the dawn of civilization until 2003 to create.

The potential revenue from both the cloud and Big Data is enormous.

Needless to say, this has drawn behemoths such as Google Inc (NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT), and Apple Inc. (NASDAQ:AAPL), among others, into the sector.  Amazon is a dominant player in providing services for the cloud, which Gartner, Inc. (NYSE:IT), a research group, estimates to be a market of over $100 billion already.  Deepfield, another research entity, estimates that one-third of Internet users visit a website powered by Amazon Web Services, its unit for the cloud.

From its start selling books over the Internet, Amazon developed an expertise in building advanced computer systems that has evolved into a position of primacy in the cloud.  From searchcloudcomputing.com, the top players in the cloud for 2012 were Amazon at #1, and Microsoft at #9. With its new Graph Search, Facebook Inc (NASDAQ:FB) could ascend to a similar lofty perch in Big Data.

Graph Search is a feature that “helps users find connections to people and places that have always existed in the graph.  In a sense, it’s a clean interface into the breadth of Facebook Inc (NASDAQ:FB) data that people have entered into Facebook, but contextualized to each user.”

Having over one billion users that account for one-fifth of the daily page views on the Internet, the amount of data that Facebook Inc (NASDAQ:FB)encounters in a continuim renders to it a tremendous competitive advantage for exploiting Big Data opportunities.  Google and Microsoft are also similarly situated due to the dominance of the Web browser and search engine for each.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Top 10 Most Expensive Luxury Cars in the World – 2014

Killer Small Business Ideas

The 50 Best Personal Finance Blogs

Most Expensive Apartments in New York City

Bloodiest UFC Fights Ever Fought

Most Expensive Rum Brands in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!