There is a very negative of the Coronavirus pandemic on the world economy. Many businesses are struggling during this time. Due to lockdowns around the world, many different industries are going through a large fall in revenue. Despite this, some businesses are still introducing new features and trying to gain market share at this time.
Facebook is one such company. The tech giant is always looking to introduce new products and services in the market to increase its revenue. This is because the tech space is very competitive, with many large firms around the world constantly looking to innovate and gain market share. Facebook also suffered due to coronavirus initially. It has been recovering well over the past month.
Facebook Stock Rises
On Wednesday, 20 May 2020, the stock price of Facebook went up fast. The stock opened at a price of 223.44 USD and then continued to rise through the day. Finally, the stock closed at a price of 229.97 USD. This was a rise of 13.09 USD or 6.04% compared to the previous closing price of 216.88 USD.
Why Did The Stock Rise?
The stock rise came on the heels of an important announcement from the company. On Wednesday, Facebook launched a new feature on the social media platform. This new feature is called “Shops”. What this does is that it allows small businesses to sell their products online using the platform. It is essentially a kind of a virtual mall. The company is introducing this feature with the intention of helping small businesses who are facing problems due to the current scenario.
Shops has many great features for small businesses to use and it is free for them to set up a Shops account. Analysts are hailing this move and predict that this could unlock a trillion-dollar market for Facebook. It was due to this news that the stock rose so fast on Wednesday.
Advantages To Facebook
Facebook will certainly see a rise in the number of users, and it will also benefit from advertisements and commissions from Shops. This feature will immediately make Facebook a direct competitor of Amazon and Google. People can even list their products on Instagram with ease. This move will definitely help Facebook scale much faster and increase its revenue by a large amount.