Breaking news is a big business on the internet and all the internet giants vie for a piece of the pie! Recently Facebook (NASDAQ:FB) has been in news with its latest offering which gives its users an easy access to breaking news from their FB account. The key factor is relevance, at which all the companies claim to do a good job. Facebook obviously knows what you like, what you have shared and Facebook is of course the most ‘social’ when it comes to news feed. As many users would have noticed, FB News feed now aggregates all the news items which your friends are talking about. Here is a recent story about Facebook’s news feed, Facebook Tweaks News Feed - Analyst Blog.
The business of content ownership and the fight between Google and publishers
Why is Google (NASDAQ:GOOG) not showing ads on Google news page? When you visit news.Google.com, you don’t see any advertisements. Ever wondered why Google, which earns billions of dollars through advertising revenue, does not show any advertising on its news page? The reason probably has a lot to do with a long legal battle which is ongoing between Google and leading publishers across the world. It is a classic love & hate relationship. The publishers know that they need Google to drive the traffic to their site, they also know Google earns a lot of revenue by showing their news headlines in Google search results. If publishers complain about Google gaining un-fairly using their content snippet, the only response Google has is that publishers are welcome to block Google from crawling their news-content. This is obviously something which the news content publishers are not in a position to do given Google’s gorilla like position in internet search. So we expect that Google will continue to earn those billions of dollars of advertising revenue without worrying about any backlash from the publishers. Google is one of our top internet stocks.
Is Twitter a better source for breaking news?
Many a times we hear people going to Twitter (NYSE:TWTR) to see the latest news, whether it is a tsunami attack or the nuclear reactor going active in Japan, there were people tweeting about it live from those locations! Twitter with its short format of 140 characters is ideally suited for short breaking news snippets and updates. Google lacks this speed as it needs to wait for publishers to write a long report on this breaking news and then it needs to be indexed by Google to appear in its search results. Twitter does a better job on breaking news, but is it a good stock to buy? Read our Twitter valuation article to know our opinion, which let me tell you is not very favorable.
How LinkedIn got into “business” news
LinkedIn has emerged as a new contender in breaking news business with the acquisition of ‘Pulse’ the famous mobile news application. Given its user profile, LinkedIn naturally focuses on business news. LinkedIn probably realised that there is no compelling reason for its users to visit LinkedIn site everyday. News is a great way to bring back users repeatedly. Now if you visit your LinkedIn page you are always greeted with some news or other.
Linked seems to have made all the right moves during last few quarters. LinkedIn stock price (NYSE:LNKD) has seen a jump of more than 100% this year. Is it a good stock to hold? We at Amigobulls don’t think so. In our Linkedin stock analysis, we have always found it to be a case of a “great company but too expensive a stock.”
In summary, breaking news will be a big business on internet. Extreme personalization bringing out the most relevant news for users will be the key to success in this market. We won’t be surprised if all the four internet giants mentioned in the article continue to improve their news offering in the days to come.
To see Google’s latest stock price movement, click here (NASDAQ: GOOG)