Will Microsoft's (MSFT) Next Best/Worst Purchase be Foursquare?
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Price: $372.97 +5.71%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 1%
Revenue Growth %: +14.7%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 1%
Revenue Growth %: +14.7%
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According to recent reports, Foursquare boasts 40 million users, which is up slightly from generally quoted numbers around 35 million.
Foursquare also has about 40,000 "superusers," which check in everyday and add relevant content. While there used to be an application to become a superuser, the company is now automating that process. You will also not really even have to access the app anymore with a new "passive location feature" being added to the app, which will automatically check users in and offer pop-up tips based on its trove of user data.
For the location feature, it is described as running in the background, waiting until you've stopped for a minute to get your exact location, then crunching some numbers in the background and utilizing your history to tell you something that might pique your interest.
While this all seems well and good, imagine how annoying it might become if your, say, stuck in traffic, or if you are constantly checking your phone only to see an application telling you where to spend money next.
Additionally, with Facebook (Nasdaq: FB) offering a check-in feature, we're not sure too many people are still using Foursquare even on a regular basis (2 - 5 times per week or more).
Then again, Microsoft would be getting a lot of data and a user base that's pretty solid, even if they only use the app once a month.
No one is really sure of the valuation behind Foursquare. Two years ago, the company was said to be worth $600 million, though that might have dropped down recently. For a few hundred million it might be a good deal for Microsoft
Shares of Microsoft are up 0.7 percent.
Foursquare also has about 40,000 "superusers," which check in everyday and add relevant content. While there used to be an application to become a superuser, the company is now automating that process. You will also not really even have to access the app anymore with a new "passive location feature" being added to the app, which will automatically check users in and offer pop-up tips based on its trove of user data.
For the location feature, it is described as running in the background, waiting until you've stopped for a minute to get your exact location, then crunching some numbers in the background and utilizing your history to tell you something that might pique your interest.
While this all seems well and good, imagine how annoying it might become if your, say, stuck in traffic, or if you are constantly checking your phone only to see an application telling you where to spend money next.
Additionally, with Facebook (Nasdaq: FB) offering a check-in feature, we're not sure too many people are still using Foursquare even on a regular basis (2 - 5 times per week or more).
Then again, Microsoft would be getting a lot of data and a user base that's pretty solid, even if they only use the app once a month.
No one is really sure of the valuation behind Foursquare. Two years ago, the company was said to be worth $600 million, though that might have dropped down recently. For a few hundred million it might be a good deal for Microsoft
Shares of Microsoft are up 0.7 percent.
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