money Facebook and Instagram rolls out shops, hits all time high at 226.45
Facebook is up nearly 5 percent Wednesday morning after the announcement of Facebook and Instagram Shops. Yahoo Finance’s Heidi Chung breaks down details.
Video Transcript
BRIAN SOZZI: Let's take another look at a another "Yahoo Finance" trending ticker. That'd be Facebook. Let's bring in "Yahoo Finance's" Heidi Chung yet again. Heidi, what is the deal with this new Facebook and Instagram Shops? What can we buy on it? Spam, food, clothing, what are the details?
HEIDI CHUNG: Hey, Brian, yeah, so it's going to be even easier for customers to buy things strictly off of the Facebook platform, as well as the Instagram platform. And that is sending the stock soaring more than 5%, hitting all-time highs today. Now this isn't just something Facebook is [AUDIO OUT] use a convenient tool for customers, it's also a free way for small and medium-sized businesses to reach customers during this extremely challenging time that we are currently in.
As we learned this week, Brian, a ton of retailers really saying that e-commerce has been blowing up lately, has been a real pillar for those companies recent successes. And Facebook and Instagram have had these marketplace features for quite some time now, but this is a really streamlined approach to be being able to shop on these platforms. The Shops will be powered by third party services, such as Shopify.
And while the service is going to be free to sign up, the idea is, that it creates a huge opportunity for Facebook when it comes to ads, [AUDIO OUT] as well as a lot of other services that the company provides. CEO Mark Zuckerberg saying in a livestream, that the company has seen a lot of businesses that have never had online services actually sign up for this service.
Wall Street analysts are actually really bullish on this as well, saying that this is yet another way to unlock a monetization tool for Facebook, and could potentially be a catalyst for the company in the fourth quarter. Shops is already available on Facebook right now, and will be available on Instagram this summer. And I [AUDIO OUT], Facebook shares have been really strong this year, outperforming the broader market, up some 5% so far, Brian.
BRIAN SOZZI: All right, cool stuff. Heidi Chung Thanks so much.
