Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

Does Facebook Have Google Envy?

By Alex Dumortier, CFA - Mar 28, 2014 at 10:15AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Facebook ramps up the "wow factor" with drones and satellites.

This has been a difficult week for U.S. stocks, but perhaps Friday will offer some relief, with the benchmark S&P 500 and the narrower Dow Jones Industrial Average ( ^DJI -0.17% ) up 0.82% and 0.86%, respectively, as of 10:15 a.m. EDT. Following its $2 billion acquisition of virtual reality specialist Oculus, Facebook ( FB -1.14% ) is in the headlines again this week for a project that features advanced technology in a bet on the future that is reminiscent of some of Google's ( GOOGL -0.68% ) experimental ventures.

In a post published on Facebook on Thursday, CEO Mark Zuckerberg shared some information regarding the work of the the company's Connectivity Lab, which wants to use drones, lasers, and satellites to deliver Internet connectivity to everyone. Sounds a bit like science fiction, perhaps (or the ill-fated Strategic Defensive Initiative, the "Star Wars" missile defense shield that was proposed by the Reagan administration), and, indeed, Facebook has hired rocket scientists from NASA's Jet Propulsion Laboratory and Ames Research Center. In addition, Facebook just acquired U.K.-based Ascenta, a five-person outfit "whose founders created early versions of Zephyr, which became the world's longest flying solar-powered unmanned aircraft."

Facebook, along with technology companies that include Samsung and Qualcomm, is a founding partner of, which aims to bring Internet access to the two-thirds of the world population that does not yet have it. Google, meanwhile, is working toward the same aim via its own Project Loon, "a network of balloons traveling on the edge of space, designed to connect people in rural and remote areas, help fill coverage gaps, and bring people back online after disasters."

The drive behind these projects is idealistic, but don't mistake it for pure philanthropy -- that idealism is paired with a fervent belief about who is best suited to shape users' interactions with the Internet and with each other. Not to mention the enormous commercial interests that drive this innovation.

Take the Oculus acquisition, for example. In justifying the $2 billion deal -- which, at first glance, appears to be outside the social network's wheelhouse -- Zuckerberg explained that he believes virtual reality could be the next major computing platform, replacing mobile devices (he didn't say specifically that he thought the Oculus Rift VR headset is cooler than Google Glass, but you know he was thinking it). It's not clear that all these ventures will pay off on the basis of return-on-investment; still, it's nice to see U.S. business leaders thinking boldly.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Dow Jones Industrial Average (Price Return) Stock Quote
Dow Jones Industrial Average (Price Return)
$34,580.08 (-0.17%) $-59.71
Alphabet Inc. Stock Quote
Alphabet Inc.
$2,840.03 (-0.68%) $-19.29
Meta Platforms, Inc. Stock Quote
Meta Platforms, Inc.
$306.84 (-1.14%) $-3.55

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 12/05/2021.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Our Most Popular Articles

Premium Investing Services

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.