Facebook will soon discontinue the messaging feature of its main app, and its users will need a separate app in order to communicate with friends via direct messages. While the move may seem odd and an unnecessary complication, it is aimed at capturing mobile messaging market where Facebook traditionally hasn't seen much adoption. The move comes following its acquisition of Whatsapp, the largest mobile messaging service in the world in terms of active users. As the company has allowed Whatsapp to operate independently as of now, it needs to ensure that Facebook brand doesn't fade away from mobile messaging market. There may be some user backlash in the beginning, but the decision is focused on reaping long-term benefits.
Our current price estimate for the company stands at $45, implying a discount of about 25% to the market price.
See our complete analysis for Facebook
Mobile Usage Is Growing, Emerging Markets Will Fuel The Next Next Wave Of Growth
Read also:
Facebook Unfriends In-App Mobile Messaging (InformationWeek)
The next Asian messaging app exit may be worth more than $ 19b (The Next Web)
Facebook (NASDAQ:FB) to Release Standalone Messaging App; Adjustments to ... (Benchmark Monitor)
Explore: 204 additional articles.
