Tech companies are in the news today as Google (GOOG), Apple (AAPL), and Facebook (FB) all posted earnings or unrolled new products. The new developments at these companies illustrate the never-ending jockeying between all three as they grapple for their share of the global advertising market.
Owners of Facebook stock made a killing on Wednesday, with shares up 21% after a solid earnings report. The rise indicates that the market has regained confidence in the California-based social networking website, after the price previously took a dip when investors grew skeptical about the firm's potential advertising revenues last year.
Those skeptics are now eating their words as Facebook's revenue rose 53%. Its share of the mobile advertising market is expected to double this year, after CEO Mark Zuckerberg opened up news feeds to marketers and even developed apps for more old-school phones, in a bid to advertise to third-world consumers who may not have access to the global smart-phone trend.
The potential returns on partnering the confessional and data-gathering elements of social media with advertisers have become common knowledge, with hundreds of new start-ups, consulting firms, and marketing professionals all searching for the newest ways to harness Big Data and use it to sell you things.
It is also important to note that all three of these companies are taking drastically different approaches. Apple is reaching out to content providers in order to create apps that stream content directly. Facebook is using data in your profile to recruit small, local advertisers - restaurants and cultural events that are taking place in your area. Google, finally, is making a riskier play by attempting to fashion itself into a television provider in its own right.
Chromecast, a new Google device which plugs right into the back of most TV sets, allows you to stream online content straight to your television. It's very similar to Apple's Airplay – only for about a third the price. It is worth mentioning that many of the features available on Airplay will not be available on Chromecast, however, users wary of the usefulness of a "SmartTV" may appreciate the price dip. The release of the device indicates just how far Google has gone to warm its frosty relations with the big networks.
Which of these tech companies strategies sounds the wisest? Use the list below to begin your own analysis.
3. Apple Inc. (AAPL, Earnings, Analysts, Financials):Designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. Market cap at $413.92B, most recent closing price at $440.51.
List compiled by James Dennin. Analyst ratings sourced from Zacks Investment Research, all other data sourced from Finviz.
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