With an approximately 35.65% year to date bump in stock price, Facebook Inc (NASDAQ:FB) decided to prey on its seemingly rival company LinkedIn Corp (NYSE:LNKD), which got knocked down almost 4.5% throughout the day, to a price close to $223.6. CNBC analyzed the prospects of this announcement including Yahoo! Inc. (NASDAQ:YHOO) in the picture as well, which is currently lurking in the shadow of the tech giants. It’s not sure if Facebook Inc (NASDAQ:FB) was motivated by desire for dominance or expansion as the company is already financially outperforming most of its peers.
“I don’t know if they want to, I think that Yahoo! Inc. (NASDAQ:YHOO) needs it more than they do. I think Facebook Inc (NASDAQ:FB)’s got so much internal momentum and Yahoo! Inc. (NASDAQ:YHOO) has a war chest and they need to buy some,” expressed Jim Cramer.
Probably, Yahoo! Inc. (NASDAQ:YHOO) has been biting its nails for a while as it was too cheap in making a serious offer to Facebook Inc (NASDAQ:FB), back when the company was valued at little more than $1 billion. Then, the most renewed social network was 2 years young and now as we head towards its 11th anniversary since going live, the business has more than $206 billion in market capitalization. This current power will allow Facebook Inc (NASDAQ:FB) to compete with other big players, not just LinkedIn Corp (NYSE:LNKD).
“Facebook Inc (NASDAQ:FB) said to be working on a new professional website that will compete directly with LinkedIn Corp (NYSE:LNKD), Google Inc (NASDAQ:GOOGL), and Microsoft Corporation (NASDAQ:MSFT). The FT [Financial Times] reports the site is called “Facebook at Work”. It will allows users to keep their personal profile separate from their work profile and enable them to chat with colleagues, connect with professional contacts, and collaborate over documents,” brought up Carl Quintanilla.
FT said that Facebook Inc (NASDAQ:FB) will pose serious challenges to Google Inc (NASDAQ:GOOGL)’s Drive and Microsoft Corporation (NASDAQ:MSFT) e-mail if this latest project gets operational. Privacy is said not to be an issue as the company’s cultural shift towards data protection and encryption will ensure that personal information will not be hacked and, as stated above, private and business will not intermingle.
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