Is Facebook Inc (FB) About to Get Competition From SnapChat?


The internet is an ever evolving landscape, one that sees sites like MySpace vanish in a matter of years, and apps like SnapChat take off in a matter of months. Facebook Inc (NASDAQ:FB) may have just met another competitor in the ever growing online messaging space. While Facebook’s messenger app has seemingly become the goto source for many different people looking to chat with their friends, whether it be text, audio or video, they may have some competition from a slightly surprising company, SnapChat. Your know, that application that has become extremely popular for sharing brief videos and images of various things? Well more advance chat may be next!

According to some developers at the company has been working on a new chat interface which is hidden in the current app, but nonetheless still there – somewhat behind the screeen. It’s called Chat V2 and it apparently allows for audio and video calls. Additionally it also features new chat “Stickers”.

It should be interesting to see what comes of this, as there are already plenty of chat options available out there, including Facebook, Skype, WeChat, and more. Facebook stock is up 0.53% or $0.52 following the news, hitting $98.46 per share. About 22.27 million shares traded hands. FB has risen 18.13% since June 18, 2015 and is uptrending. It has outperformed the S&P500 by 29.15%.

From a total of 33 analysts covering Facebook (NASDAQ:FB) stock, 32 rate it a “Buy”, 1 a “Sell”, and 0 a “Hold”. This means that 97% of the ratings are positive. The highest target price is $155.0 while the lowest target price is $88. The mean of all analyst targets is $122.77 which is 24.69% above today’s ($98.46) stock price. Facebook was the topic of 59 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. Argus Research maintained shares on November 6 with a “Buy” rating. Morgan Stanley maintained shares with a”Overweight” rating and a $120 target share price in their report from a November 5. Canaccord Genuity maintained FB stock in a recent report from November 5 with a “Buy” rating. Credit Suisse maintained the rating on November 5. Credit Suisse has a “Outperform” rating and a $135 price target on shares. Finally, Jefferies maintained the stock with a “Buy” rating in a report they issued on a November 5.

The institutional sentiment increased to 1.73 in Q2 2015. It’s up 0.01, from 1.72 in 2015Q2. The ratio increased, as 69 funds sold all their Facebook Inc shares they owned while 375 reduced their positions. 126 funds bought stakes while 643 increased their total positions. Institutions now own 1.55 billion shares which is 2.48% more than the previous share count of 1.51 billion in 2015Q2.

Millennium Tvp Management Co. Llc holds 52.76% of its total portfolio in Facebook Inc, equating to 639,552 shares. Parametric Risk Advisors Llc owns 7.97 million shares representing 46.51% of their total US portfolio. Moreover, Sc Us (Ttgp) Ltd. has 41.15% of their total portfolio invested in the company, equating to 1.04 million shares. The California-based Meritech Capital Associates Iii L.L.C. has a total of 37.81% of their portfolio invested in the stock. Duquesne Family Office Llc, a New York-based fund reported 4.09 million shares owned.

Since February 25, 2015, the stock had 0 buys, and 36 insider sales for a total of $168.47 million in net activity. Athwal Jas sold 30,000 shares worth $3.06M. Stretch Colin sold 1,000 shares worth $98,710. Cox Christopher K sold 5,778 shares worth $561,622. Schroepfer Michael Todd sold 31,283 shares worth $3.00M. The insider Fischer David B. sold 15,000 shares worth $1.43 million.

Facebook, Inc. is a social networking company. The company has a market cap of $274.91 billion. The Firm is engaged in developing products that enables users to connect and share through mobile devices and personal computers. It has 98.91 P/E ratio. It offers various services focused on people, marketers and developers.