The operator of the world’s largest social network, Facebook Inc. (NASDAQ:FB) come with a new feature through which it will allow users pay to endorse friends’ posts on the website by way of it seeks new sources of revenue.
The firm declared in an e-mailed statement on yesterday that the tool enlarges on a service introduced previous year that allows users pay to promote their personal posts. The new service will charge to user around $7 in the U.S., though prices may differ.
Whereas, slow profitability growth and drooping shares are pressurizing Facebook (FB) to discovery new ways to make more revenue from its 1.1B members. In the previous year, the firm has declared mobile-advertising, very good tools for marketers on desktops plus a feature for users to send friends gifts through the site.
The company stated that if friend of a user is running a grueling for charity and has displayed that information publicly, user could help that friend by promoting their post to all of their friends. While if someone is renting their apartment out and he/she tells her/him friends on Facebook, users can share the post with the people you and your friend have in mutual so that it displays up higher in news feed and further people notice it.
Shares of Facebook surged more than 2% to close at $28.50 in last trading session. Shares of the Menlo Park, California-based firm have dropped 25% since an IPO in May.
Other noticeable stocks is Angie’s List Inc(NASDAQ:ANGI)which rose about 24% in last session after strong results and an upbeat estimates. Many analysts gave optimistic reports on the results, noticing that the firm is growing on its business model that mainly has users paying for its content.
Considering on the tech sector was Cisco Systems, Inc. (NASDAQ:CSCO), its shares close down about 0.7% following the network giant announced a small sales gains for its second fiscal quarter and delivered an estimate that was in line with Wall Street’s predictions. The stock had surged 25 percent since the firm’s previous earnings report.