Facebook (FB) is planning to carry out a major upgrade of its core networking app. Bloomberg reports that the social networking giant plans to reintroduce voice and video calling features seven years after spinning off Messenger from the main Facebook app.
The rollout will first target some users in the U.S. who will be able to make voice and video calls directly from the Facebook App. The integration is part of the company’s push to avert the need to switch between Facebook and Messenger to make voice or video calls.
The new features come on the heels of Facebook starting to test a limited version of the Messenger inbox on the core Facebook app. The series of changes in the recent past are part of Facebook’s push to integrate all apps and services onto one flagship app. (See Facebook stock charts on TipRanks)
The social media giant has already made it possible for people to send messages between Instagram and Messenger apps and plans to enable the same with WhatsApp. According to CEO Mark Zuckerberg, the integration benefits users by allowing them to reach people with ease without switching between apps or downloading multiple apps.
However, the integration continues to elicit divided opinions. Critics have argued that intertwining services is part of the tech giant’s push to avoid being broken down by regulators. Facebook has been under immense pressure to spin off the likes of Instagram and WhatsApp. The spin-off is part of the regulator’s push to reduce the amount of power the company wields in the social networking space.
Yesterday, Arete Research analyst Rocco Strauss downgraded Facebook to a Hold from a Buy. Strauss’s price target is $381, which implies 4.86% upside potential to current levels. According to the analyst, Facebook is heavily dependent on advertising, which could come under pressure.
Consensus among analysts is a Strong Buy based on 25 Buys, 3 Holds, and 1 Sell. The average analyst price target of $420.25 implies 15.66% upside potential to current levels.
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