Facebook Inc (NASDAQ:FB) is looking into ways it can monetize its recent acquisition, WhatsApp. There has been much debate over the subject and no real guidance given by the social media giant as to what avenue they will take. The company has not implemented any advertising programs into the app as of this point mostly not to upset its millions of loyal users. In their last earnings call the company discussed expanding the platform and taking its subscriber count over 1 billion but other than that nothing about how they will add to their revenue stream via the popular messaging app.
Besides it immense subscriber base, over 30 billion messages are sent via the WhatsApp platform a day. That’s a huge amount of use and shows the users spend a much time on the app. This at some point needs to equate to revenue and if it does, it could benefit Facebook Inc (NASDAQ:FB) for many years going forward. The company wants to do something special with the app that is lucrative for advertisers and also enhances the users experience without upsetting them. They still haven’t decided but that will either come from charging for usage of through direct advertisements.
Facebook Inc (NASDAQ:FB) touched on the subject of monetizing the app in its last conference call. They seem inclined to stay away from the fixed-fee models and are looking at other types. The reason is payment platforms do not have the huge potential for capitalization that other advertising platforms do. This is a unique opportunity for Facebook and it wants to make the most of it. Plus, it’s not in a hurry to make this call without being sure of themselves and their plan.
The stock is coming off a double bottom and needs to move above $82.02 to complete the pattern and break out. Otherwise it will pull back and challenge support at $74.14. Either way, the internals are strong on the stock so the worst to be expected is a sideways channel between the two points.