Facebook, Inc (NASDAQ:FB) is testing a new feature that will enable users to search for jobs. Tech Crunch claimed it first spotted the Job tabs on its Facebook page. Later on, Facebook confirmed the testing of new recruiting features via a statement.
Tech Crunch has quoted Facebook spokesperson saying “Based on behavior we’ve seen on Facebook, where many small businesses post about their job openings on their Page, we’re running a test for Page admins to create job postings and receive applications from candidates.”
Similar to other job search portals, the Job tabs will offer the standard “Apply Now” button. For a business, any application received will be through Facebook Message. Businesses also stand to gain more followers, no matter whether they apply or not, Tech Crunch further added.
The social media giant’s foray into the recruiting business is widely observed as a sort of threat for LinkedIn (NYSE:LNKD) . LinkedIn is the biggest professional network enabling users to connect and engage with other professionals, access shared knowledge, exchange ideas and insight about different professions and companies, and search business opportunities.
Per analysts, businesses will have to pay Facebook for displaying their job postings on the News Feed, which can prove to be a threat for some of LinkedIn’s ad offerings. Plus, Facebook’s giant user base of nearly 1.8 billion compared with a little over 460 million LinkedIn users gives Facebook an edge. It could attract more recruiters to the platform.
Facebook has been actively venturing into newer arenas to boost its top line. The company recently forayed into enterprise software by launching Workplace. With Workplace, the social media giant is trying to break into the lucrative enterprise software market. Per a Jun 2016 Gartner report, global spending for enterprise software will grow 7% year over year to $367.5 billion in 2016. This is a lucrative opportunity for Facebook, given the higher margins involved. Facebook also upped its ante in the social commerce area with the launch of Marketplace. It also trying to take on Steam by launching its own PC game platform called Gameroom.
At present, Facebook carries a Zacks Rank #2 (Buy). Other well-ranked stocks in the broader tech space include Jabil Circuit Inc. (NYSE:JBL) and Intel Corporation (NASDAQ:INTC) , Jabil Circuit sports a Zacks Rank #1 (Strong Buy) while Intel carries the same rank as Facebook. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Jabil Circuit has delivered an average positive earnings surprise of 41.58% of the trailing four quarters while Intel has delivered a positive earnings surprise of 12.14% over the same time frame.
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