Facebook and Google

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Facebook and Google open up new business segments

Google’s revenue climbed up to 17,3 percent for the Q1 2015, as the number of ads gained momentum. The main driver has been ads on Smartphones and Tablets. Adjusting its search algorithm, the tech company is said to prefer websites, optimized for smartphones and tablets and is therefore exposed to close monitoring by the EU commission. Along with the classic online search, Google provides with Android an operating system, as well as an online payment system, called Wallet. Furthermore Google produces tablets and conducts research on driverless automobiles. Moreover Google is entering the telecommunications market with an innovative mobile phone contract.

Facebook, a major competitor of Google reported revenues of 3,54 Bio $ for the Q1 2015 and earnings of 512 Mio $. The number of 1,44 Bio monthly user makes Facebook the biggest social network worldwide. Facebook entered the Telecommunications market with the acquisition of WhatsApp in 2014. One year later, the tech company could become a real threat for the traditional telecommunications provider, by providing a free telephone service. According to analysts, the mostly young users of social networks could be valuable in terms of advertising value in the future. Hence, the marketing value of Instagram, acquired by Facebook in 2014 could rise due to that fact.

Currently, Bloomberg registered Analysts share 45 Buy recommendations, 7 Hold recommendations and 1 Sell recommendations for Facebook and 41 Buy recommendations, 9 Hold recommendations and 0 Sell recommendations for Google.