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Facebook Inc (FB), Google Inc (GOOG), Microsoft Corporation (MSFT): Be Careful About Getting Too Excited Over Tech Releases

With so many tech companies boasting billions of dollars with which to invest in new technology, it seems like each major firm is releasing its own version of basically everything.

Almost every day one of these companies makes a new release. Facebook Inc (NASDAQ:FB), Google Inc (NASDAQ:GOOG), and Microsoft Corporation (NASDAQ:MSFT) are just three of the companies on the outside looking in at the sales of competitors like Samsung and Apple Inc. (NASDAQ:AAPL) — and the three companies are doing whatever they can to take away some of the market share of those super-giants.

Facebook Inc (NASDAQ:FB)

It’s challenging to know when new technology is released whether it will take market share closer to the company making the announcement. Let’s take a look at some of the most recent changes to Facebook Inc (NASDAQ:FB), Google Inc (NASDAQ:GOOG) and Microsoft Corporation (NASDAQ:MSFT) and see whether these announcement will likely affect these companies’ share prices.

Facebook Home software never really caught on

Facebook announced the Home software earlier this year. The company touted the suite’s ability to allow Android users to essentially turn their phone into a Facebook Inc (NASDAQ:FB) phone. After logging into the device, your user profile pic follows whatever you bring up on the screen. The background features the Facebook feed and pics that friends have posted. When holding down your Facebook profile pic, you can swipe the screen to open apps, open Facebook messenger or access the previous app. The messenger app features small heads of your friends on the screen, and they will follow you wherever you go until you log out of messenger.

While the technology seemed at the time like it would catch on and improve the Facebook Inc (NASDAQ:FB) brand (and share price), it didn’t do much to excite users. The reception prompted the company to take another look at the software, and on June 11 CEO Mark Zuckerberg told shareholders big things are coming for the software suite. But I wouldn’t hold my breath.

Google Glass real estate app

Google Inc (NASDAQ:GOOG) announced on June 11 a Glass real estate app. While the Google Glass device itself is a showstopper, some of the software associated with it won’t likely make much of a difference to the company’s earnings potential. The real estate app was released by Trulia, which is a San Francisco-based company that operates real estate listings in major cities throughout the United States. It not only displays property signs, it also tells the user when they are close to an open house. While the app is interesting and could be practical for house hunters, it likely won’t make much of a difference on Google’s bottom line. However, if more apps like these are released to Google Glass, company shares can find some more footing.

Microsoft set to release Xbox One

Hardware releases make much more of an impact on share prices than do software releases, as they are often flagship products that really show how ahead, or behind, of the times the companies are. Microsoft Corporation (NASDAQ:MSFT) is set to release Xbox One sometime in November, a company executive said on June 11. The ability of the Xbox One to compete against the Sony PlayStation 4 — which is slated to be released around the same time — will be the determining factor in where this company’s shares pop. Microsoft hasn’t done itself any favors by already putting limits on users’ ability to pass games onto friends. I’d place my money on Sony to come out not only with a better product, but to also win customer loyalty.

How to know when a release is significant

Typically, a software release will move shares in the short-term, but as a long-term investor only, I don’t recommend trying to time the hour or minute when shares will rise and fall. However, when a company releases a piece of hardware, it can really begin to change the landscape and allow more dramatic shifts in market share.

Phillip Woolgar has no position in any stocks mentioned. The Motley Fool recommends Facebook and Google. The Motley Fool owns shares of Facebook, Google, and Microsoft.

The article Be Careful About Getting Too Excited Over Tech Releases originally appeared on

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