An E-Commerce Game-Changer for Facebook?

The following video is part of our "Motley Fool Conversations" series, in which analyst John Reeves and advisor David Meier discuss topics around the investing world.

Facebook will be testing its Collections initiative by rolling out its "Want" button. This could be a huge source of future revenue and cash flow for the company. Here's how it will work. Facebook will test the idea with seven retailers, including Williams-Sonoma's Pottery Barn, Limited Brands' Victoria Secret, and Michael Kors. Using the image of a product, people can express their interest by clicking a special "Want" button. It's valuable because retailers will have the ability to see the level of demand and do more targeted advertising. In addition, there will be a way to click through and purchase items. Imagine if everyone on Facebook built a "Wish List" and made it available. It would be a huge source of information about demand and could change the way e-commerce happens. Rather than going to Amazon.com and searching for what you want, retailers could come to you. John and David think that is a valuable position.

So far, Facebook has been a disappointment for investors. But there still might be attractive opportunity here for patient investors. We've outlined the pros and cons in our newest premium research report. There is a lot more to this company than meets the eye, so be sure to get your copy today. Access your report by clicking here

David Meier and John Reeves have no positions in the stocks mentioned above. The Motley Fool owns shares of Amazon.com and Facebook and has options on Facebook. Motley Fool newsletter services recommend Amazon.com, Facebook, and Williams-Sonoma. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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