Is Facebook Inc (FB) the Next Google Inc (GOOG)?

Services!

Facebook could be the next Google Inc (NASDAQ:GOOG). But in order for that to happen, Facebook needs to come up with its own services people want to use and provide value. For example, Facebook depends on Microsoft Corporation (NASDAQ:MSFT)‘s Bing Maps for results that require geolocation. Facebook and Microsoft have had a relationship going back to Microsoft Corporation (NASDAQ:MSFT) smartly making the decision to invest $240 million in the company during 2007.

Microsoft Online Services Division revenue. Source: Microsoft 2012 10-K

But that investment has left Facebook with sub-par offerings like Bing Maps. Search functionality outside of Facebook’s walls is provided by the Bing search engine. This situation is clearly a play to help Microsoft Corporation (NASDAQ:MSFT)’s Online Services division, which lost $8 billion last year. Microsoft is not a company that offers Facebook any sort of synergy to become like Google. It’s more like a lifeline for Microsoft’s consumer business that continues to flop.

Facebook needs ideas

It seems like Facebook Inc (NASDAQ:FB) is not generating enough ideas for new and innovative services. This seems very akin to a Microsoft mentality rather than a Google one. Remember, Google is constantly launching new services and shuttering those that don’t make money. At the same time, Microsoft launches secondary services that compete with what Google Inc (NASDAQ:GOOG) has found successful in the consumer space (mobile, maps, and search).

Facebook really needs new ideas for user engagement. Mobile is a noble attempt, but what are they doing for the user with this? What is the incentive for a user to plaster Facebook all over their phone? If Facebook wants to be like Google, they need to develop useful services that keep people coming back. One idea that has been rumored is a new chat product. Although the concept of online chatting is not a new idea, this could be something that people will use. Facebook needs it in order to offer that value play to users and continue to grow.

The article Is Facebook the Next Google? originally appeared on Fool.com and is written by Daniel Cawrey.

Daniel Cawrey has no position in any stocks mentioned. The Motley Fool recommends Facebook and Google. The Motley Fool owns shares of Facebook, Google, and Microsoft. Daniel 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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