Facebook’s newly added ecommerce features have sent its stocks skyrocketing to record levels as investors dub its retail shift a “significant opportunity”.
Facebook saw its shares jump 8.2 per cent yesterday, marking the third day of growth in a row, seeing its stocks close at a record $303.91 per share.
JMP Securities attributed the sharp rise in value to a the fact that there is a “clear line of site to monetizing” Facebook’s new Facebook Shop section.
Meanwhile Stifel added that the recent additions to its Shop service on both Facebook and Instagram “suggests the benefits to growth could be evident as early as 2021”.
Yesterday Facebook announced that it was launching a ‘Facebook Shop’ tab within its main app alongside a range of other ecommerce features as it continued to drive its transformation into a retail destination.
Facebook Shop is being tested in the US allowing users instant access to the social media giant’s new Shops platform, which is now being rolled out globally, via its core app.
Similar to Instagram’s recently launched ‘Shop’ section the new functionality provides users with a destination, separate from Facebook’s peer-to-peer Marketplace platform, where they can browse and purchase goods from various businesses in-app.