Facebook (FB) Stock Rose by 3.74% in Pre-market, Company Goes Head-to-head with Zoom

UTC by Christopher Hamman · 3 min read
Facebook (FB) Stock Rose by 3.74% in Pre-market, Company Goes Head-to-head with Zoom
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Facebook (FB) stock price was rising today in the pre-market. The company now wants to become a serious rival for Zoom.

Facebook Inc (NASDAQ: FB) stock price has risen by 3.74% in the pre-market today. This comes as the social media giant is reportedly seeking to compete with Zoom Video Communications (NASDAQ: ZM). Facebook had a Windows app for its chat program in 2011. This was however discarded. 

Mark Zuckerberg revealed in his Facebook post:

“We’re all looking for more ways to be together even while we’re physically apart. So today we’re launching native Messenger apps for MacOS and Windows.”

He continued:

 “Group video calls and messages on our apps have surged – Messenger use on desktop has more than doubled in the last month. These new native apps will make the experience a lot better. I hope you enjoy!” 

There was talk of a desktop version to its Messenger app at Facebook’s developer F8 conference last year. Sources say that the Mac version of the App was available for testing last month. 

Facebook (FB) Stock Price Could Rise with New Messenger Desktop App

The new desktop app has been released with a lot of bells and whistles. Sources say that the Messenger Desktop App allows for free group video calls without a limit. The web version allows up to 8 users only. Synchronization of chat and video sessions with all devices is now available using the desktop app as well. 

This puts the social media giant neck-to-neck with video conferencing service Zoom. Zoom has experienced a jump in both usage and popularity since the COVID-19 movement restrictions began. It also faces privacy issues and has been accused of selling information to Facebook as well. 

Zoom has a clear advantage when it comes to workplace collaboration. The screen sharing feature enables users to show others their desktops while at the conference. It helps to improve workflow as users achieve their tasks. 

One thing going against Zoom is its ability to convert its free users into paying customers. Facebook’s Messenger app isn’t monetized. At least not yet. 

Monetization Is Another Issue

 Its ad revenue from other platforms allows the Menlo Park Technology company to offer freebies such as this. It also gives Facebook the clear advantage of adding features to its “social swiss army knife”. 

While Facebook is said to have been affected by its ad revenue, it has also seen an increase in usage of its Messenger app. Audio and Video calls have also seen increased levels since stay-at-home restrictions had started. 

Shareable URLs for conference calls still seem to be a problem. But this hasn’t slowed enthusiasm for those Facebook users willing to try out the new messenger desktop app.

The social media giant has also indicated that Apple‘s iMessage is Facebook’s closest competitor. The desktop app is said to resemble the interface of iMessage. Apple monetizes its iMessage by smartphone and content sales. 

Facebook seems to have presented an answer to most of its competition. Every time something new comes up within its reach, it also adapts and introduced something new. This business model has seen the rise of Facebook dipping its toes in every pond it can find. 

The question of making a profit off these adaptations has been a thorny issue. Innovations are always on the rise. It would take some tinkering from the wizard of Menlo Park to make his ecosystem to increase its profitability. 

As at the time of filing this report, Facebook (FB) stock price was at $159.95 (+3.74%) in the pre-market. Zoom Video Communications Inc stock price was at $112.65 (-12.13%).

Business News, Market News, News, Social Media, Stocks
Christopher Hamman

Christopher Haruna Hamman is a Freelance content developer, Crypto-Enthusiast and tech-savvy individual. He is also a Superstar Content Developer, Strategy Demigod, and Standup Guy.

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