By: Stephanie Brown
Facebook Inc. (NASDAQ:FB) has officially ended its partnership with Microsoft Corporation (NASDAQ:MSFT) after quietly removing Bing as its search provider and announcing that plans to debut its own search tool. Microsoft remains the second largest search tool in the U.S with 20% of total market share, despite being dropped by Facebook.
Over the years, Facebook has been building its search products while using Microsoft’s Bing to provide results beyond the interest graph. A Facebook spokesperson has already confirmed that that it is currently unable to display web search results, as focus has shifted towards assisting users find what has been shared with them on the network.
The company additionally admitted that its search tool is poised to face unique challenges in a closed network that has over 1 billion active users across the globe. It is still a difficult but an important obstacle that Facebook will have to tackle as it continues to dominate the social landscape. Its decision to launch a new web tool shows the importance and focus that Facebook is giving the search engine business. Facebook's searches have over the years been used to help users connect with friends and for finding information in its social media platform.
Mark Zuckerberg, has stated that the search engine business remains a key growth space that the company will look to pursue going forward. He additionally affirmed that the information shared by users on the platform could one day replace the need to search the web.
Technical Analysis
Interestingly enough, Facebook has started to move up again. The stock is currently trading above its 20-Day EMA of $76.08 with an RSI of 59.21. It continues to face resistance at $78.9, $80.5 on the upside, while support stands at $77.4, $76.5.
Actionable Insight
Buy Facebook Inc. (NASDAQ:FB) above $78.1 for target of $78.5, $79 with a stop-loss of $77.75
