Facebook’s users will soon be able to listen to music hosted on Spotify while browsing. Project Boombox is the new initiative by the networking giant that cements the growing ties between the two companies. According to TechCrunch, Facebook users will soon be able to listen to songs and playlists without being externally linked to the music and podcast giant. According to Techcrunch, Facebook (FB) plans to build an audio player that will link directly to the Spotify (SPOT) app or website. The integration will support both music and podcasts, with trials already started in Mexico and Thailand. Enabling audio services on Facebook apps is part of CEO Mark Zuckerberg's initiative to improve user's experience on the various apps. The initiative should enhance creators' experience on the platforms as they will now be able to share their work with ease. “We think that audio is going to be a first-class medium and that there are all these different products to be built across this whole spectrum,” said the CEO. He further added, “Of course, it includes some areas that, that have been, you know, popular recently like podcasting and kind of live audio rooms like this, but I also think that there’s some interesting things that are under-explored in the area overall.” Analyst Brian White of Monness Crespi Hardt, maintains a Buy rating on Facebook with a $375 price target implying 24% upside potential from current levels. “With sales up 37% per annum over the past five years, EPS turning in a 51% CAGR and one of the highest operating margins in our coverage universe, we believe Facebook should trade at a healthy premium to the market and tech sector,” White wrote in research note to investors. Consensus among analysts is a Strong Buy based on 30 Buy and 4 Hold ratings. The average analyst price target of $344.81 implies 14.38% upside potential to current levels. FB scores a 7 out of 10 on TipRanks’ Smart Score rating tool, signalling its performance is likely to align with the overall market. Related News Amazon Trials Latest Industry Technology In New Salon In London PayPal’s Venmo Adds Support For Bitcoin, Ethereum, Bitcoin Cash and Litecoin Amgen Completes The Acquisition Of Five Prime Therapeutics
Facebook-backed Diem could launch later this year, according to a CNBC report. The report, citing an anonymous source, said that the Diem Association, a non-profit organization based in Switzerland, is planning to launch a small-scale pilot later this year with a single “stablecoin” pegged to the US dollar.
CNBC also said that if Diem’s pilot does get launched this year, it will focus mainly on transactions between individual users and also allow them to buy goods and services.
According to the report, Facebook (FB) first proposed a universal digital currency, Libra, in 2019 as a universal currency that could be tied to different currencies including the Euro and the US dollar. However, FB faced strong opposition to this project from financial regulators around the world.
As a result, the organization supervising the Libra project, currently known as Diem, lost its backers including Mastercard (MA) and Visa (V), resulting in Diem "opting for multiple 'stablecoins' backed one-to-one by different government-backed currencies, as well as one multi-currency coin.” (See Facebook stock analysis on TipRanks)
Around a week ago, Cowen analyst John Blackledge raised the price target from $350 to $360 (18.9% upside) and reiterated a Buy on Facebook. Blackledge raised his estimates for FB after a first quarter digital advertising call indicated rising advertising revenues at FB and Instagram.
Shares of Facebook have gained 7.3% in the past month.
Overall, the Street is bullish on the stock with a Strong Buy consensus rating, based on 30 Buys and 4 Holds. The average analyst price target of $344.81 implies 13.9% upside potential from current levels.
According to the TipRanks Smart Score system, FB scores a 7 out of 10, indicating that the stock is likely to perform in line with market averages.
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