Yahoo Finance Facebook Takes Lite to Developed Nations, Expands User Base
Facebook FB is launching Facebook Lite application in more countries including developed nations like United States, Canada, Australia, United Kingdom, France, Germany, Ireland and New Zealand.
The trimmed down version of the Facebook application was introduced by the company in 2015 to target users in emerging nations where data connection is weak and bandwidth lower.
Talking about the necessity of the app in developed nations, Reuters quoted a company representative saying, "We've seen that even in some developed markets people can have lower connectivity, so we want to make sure everyone has the option to use this app if they want,"
The app is currently available in 100 countries. We believe that with the recent launch, the company will be able to cater to a larger audience and expand its user base further.
Notably, Facebook has gained 31.3% in the past year, substantially outperforming the industry’s 23.3% rally.
Expansion to Drive Growth
Facebook is leaving no stones unturned to target more users. The company’s user base continues to grow at a significant pace driven by new features and tools that improve engagement.
Like Facebook Lite, the company offers another stripped down app, Messenger Lite, which is designed for users with poor network speed and limited storage.
In December 2017, the company unveiled a new messaging application called Messenger Kids for children below the age of 13 in the United States.
In the last reported quarter, the company’s Daily Active Users (DAUs) increased 14% year over year to 1.40 billion. We note that in the quarter, almost 700K DAUs declined in the United States and Canada sequentially due to the company’s News Feed changes to limit public content, news and video.
We believe the latest initiative of Facebook will allow the company to significantly boost its user base and solidify its position in both developed and developing markets, despite severe competition from prime players like Google and Twitter TWTR. Notably, Twitter also launched a Twitter Lite application on Android devices in 24 countries last year, which is helping it gain traction in the international market.
Facebook, Inc. Revenue (TTM)
Facebook, Inc. Revenue (TTM) | Facebook, Inc. Quote
Zacks Rank & Other Stocks to Consider
Facebook carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader technology sector include Lam Research Corporation LRCX and Paycom Software PAYC, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth for Lam Research and Paycom is projected to be 14.9% and 25.8%, respectively.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Facebook, Inc. (FB) : Free Stock Analysis Report
Paycom Software, Inc. (PAYC) : Free Stock Analysis Report
Twitter, Inc. (TWTR) : Free Stock Analysis Report
Lam Research Corporation (LRCX) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
