Facebook Eyes a Huge Opportunity in E-Commerce

Facebook (NASDAQ: FB) has long had ambitions beyond just being an advertising business. The company's 2014 acquisition of Oculus gave it a stake in virtual reality, and its launch of hardware like Portal shows its intentions in video communication products.

But the company's biggest opportunity outside of advertising, which makes up the vast majority of its revenue, appears to be e-commerce. Not only is e-commerce a fast-growing global market representing trillions of dollars in sales, but Facebook and its family of sites including Instagram, Messenger, WhatsApp also provide a crucial platform to 140 million small businesses around the world.

On the recent earnings call, management dropped a number of hints about the company's aspirations in e-commerce. COO Sheryl Sandberg asserted that the company has been a lifeline for many businesses during the coronavirus crisis as more and more businesses pivot to the online channel while brick-and-mortar storefronts are closed.

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Source Fool.com