Facebook Inc (NASDAQ:FB)’s development of the new code was initially reported by Scottish developer Tom Waddington when he mentioned spotting RSS feeds in Facebook’s code. The feed revealed various entries and a multitude of subscribers. However, when he attempted to access the feeds on the site’s API, he was locked out. The feature can only be accessed through apps that are whitelisted.
If the development proves true, it will be another step Facebook has taken to attain a segment of the tech market. And this marks yet another attempt to move it away from being a one-trick pony. Facebook is doing whatever it can to increase its revenue, and that’s good news for investors. While Facebook Inc (NASDAQ:FB) is the newcomer on the scene, the company is looking for ways to expand, and that could be a sign of tremendous growth in the years ahead.
Full steam ahead for Facebook
Facebook Inc (NASDAQ:FB) was reported, by the Jerusalem Post, to be in a bidding war for what was eventually purchased by Google Inc (NASDAQ:GOOG). Waze, a navigation application, was recently acquired by Google Inc (NASDAQ:GOOG) for $1.3 billion. The software is an improved version of Google Maps and will facilitate the development of traffic and accident reports to help people decide the best route to take.
According to the Jerusalem Post, Facebook Inc (NASDAQ:FB) officials landed in Israel for discussions, but a deal never materialized due to money and the reluctance of Facebook to keep staff in Israel. Apple Inc. (NASDAQ:AAPL) was also reported to be close to a deal for Waze.
Apple is in many takeover talks. Last year alone, the company made three acquisitions, including Chomp, (an app search engine), Authentec, (security for PCs and mobile devices), and Particle (an HTML 5 web app firm). Apple Inc. (NASDAQ:AAPL), like Google Inc (NASDAQ:GOOG), knows acquisitions are important to continue to develop superior products. But Apple Inc. (NASDAQ:AAPL) has the cash to buy anything that will help it grow and it can certainly outbid competitors like Facebook and Google Inc (NASDAQ:GOOG) in order to gain market share.
Getting back to Facebook
Facebook Inc (NASDAQ:FB)’s mission for tech domination continues: the company also made a move into the iPhone market with its Facebook Home software earlier this year. While it was optimistic about the potential of people integrating the software on their phones, the release didn’t hit and now Facebook is attempting to re-release Home with a slew of upgrades.
The company also bought Parse in May. The $85 million deal allows Facebook to branch out into building mobile applications through various operating systems.
Which company has more buying power?
Google has a market capitalization of about $304 billion compared to Facebook’s market cap of around $63 billion. However, Facebook’s cash is growing rapidly, putting it in a better position to buy. In 2010, the company had nearly $1.8 billion yet last year boasted nearly $2.4 billion — that represents a 33% increase.
Google, on the other hand, had cash and equivalents of nearly $9 billion in 2010 and now has just over $8 billion — that represents a decrease of about 13%. It should be noted, however, that cash and equivalents fluctuate rapidly, and companies also make purchases with debt and assets. But it does indicate a stronger position for Facebook Inc (NASDAQ:FB).
Is it clear which company will grow faster?
Knowing which company will grow faster depends on the quality of purchases each makes. Google Inc (NASDAQ:GOOG)’s acquisition of Waze comes with 50 million users and shows it’s not only able to outbid Facebook, but that it’s also able to work with a potential acquisition on some of its conditions. In the short-term, I’d put my money alongside Google. But as a long-term investor, Facebook looks to be the more attractive, due to it’s rising cash flow, user base, and top notch CEO Mark Zuckerberg.
The article Facebook and Google Looking More Like Rivals originally appeared on Fool.com and is written by Phillip Woolgar.
Phillip Woolgar has no position in any stocks mentioned. The Motley Fool recommends Facebook and Google. The Motley Fool owns shares of Facebook and Google. Phillip is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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