While the topic of the latest AWS-3 auction looms in the telecom space nowadays, the question whether giants like Google Inc (NASDAQ:GOOGL) and Facebook Inc (NASDAQ:FB) should be diving in this business has also been coming under the discussion. On CNBC, Jim Cramer and David Faber shed some light on this possibility in the future.
“[…] Certainly Google Inc (NASDAQ:GOOGL), I don’t hear Facebook Inc (NASDAQ:FB) as often, but Google has made that effort in certain cities, Kansas city for exapmle, parts of Texas to actually wire things up. We also know about their Project Loon with those balloons to try to offer Wi-Fi, and there is that continued question whether they will get in with a large acquisition of some type […],” remarked Faber.
It is not a small space, the broadband business, and since it is in the tech sector, its potential to diversify revenues is immense for both Google Inc (NASDAQ:GOOGL) and Facebook Inc (NASDAQ:FB). It offers these tech giants to form a cradle to the grave type of operations, where they provide means to connect to connect to the internet and then offer services on the world wide web as well.
They certainly have got the arsenal for it, in terms of investment required to enter the telecom space. Facebook Inc (NASDAQ:FB) with a market capitalization of nearly $205 billion shouldn’t be written off that easily as well. Mark Zuckerberg, the social media platform’s CEO recently visited India in October, and expressed the intention to connect millions in the country of one of the world’s largest populations to the internet.
For Google Inc (NASDAQ:GOOGL), it is indeed a more natural choice as Faber pointed out. The tech giant which has seen its stock price decline by nearly 3.5% this month has a market capitalization of about $364 billion, and is at the forefront of most technological advancements and project loon could indeed be one indication that the company will soon enter the more mainstream telecom industry as well.
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