Facebook CEO Mark Zuckerberg at the F8 Facebook Developers conference on April 30, 2019 in San Jose, California.
Justin Sullivan | Getty Images
Shares of Facebook reached an all-time high of $230.75 Thursday, with Wall Street being bullish on the company’s focus on e-commerce. Facebook stock soared more than 6% in morning trading.
The social media giant announced Facebook Shops on Wednesday, which will make listing products to Facebook and Instagram easier.
Investors rallied on Facebook’s announcement, with Morgan Stanley writing in a note Wednesday that this could make Facebook a competitor to Amazon and Alphabet’s Google. Shops also presents itself as a multi-billion dollar opportunity, the analysts wrote.
Deutsche Bank also sees the opportunity for the company to rake in billions.
“We think Facebook Shop in a simplistic bull case could drive up to as much as a $30 [billion] revenue opportunity, across a combination of take-rate driven transactional and advertising revenue,” the analysts wrote.
AB Bernstein said in a note to clients early Thursday that Facebook Shops could unlock a $1.3 trillion market.
“We have long viewed FB as the ‘rent’ to the digital economy and a core component of the online retail ecosystem,” the analysts wrote.
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