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

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
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

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!