Facebook Shares Soar after Launching Online Shopping Service

Facebook share price reached an all-time high to $230.75 on Wednesday, up 6.4%, as Wall Street escalated the company's focus on e-commerce.

The US tech-giant announced the launch of "Facebook Shops", which will make shopping products on Facebook and Instagram easier.

Morgan Stanley wrote in a note on Wednesday that this could make FB a strong rival to Amazon and Alphabet's Google as Investors rallied over the Facebook announcement, and Analysts, including ones in Deutsche Bank wrote that "Shops" present themselves as a multi-billion dollar opportunity.

"We believe that Facebook Shops is in a simplified state that can lead to revenue opportunity of up to $ 30 billion, via a mixture of transaction revenue and paid advertising on average," the analysts wrote.

Facebook Shops could bring $1.3 trillion to markets

Also, AB Bernstein said in a note to clients early Wednesday that FB stores could open a market worth $ 1.3 trillion.

"We have always viewed FB as a" lease" of the digital economy and a key component of the online retail system," the analysts wrote.

Meantime, the social-media giant invested last month $5.7 billion to acquire 10% of Jio Platforms, which owns India’s largest telecom operator.

The deal could reduce the company’s net debt by 12%, reducing leverage from Reliance Jio Infocomm, given the collapse in oil prices that casts doubt on the company’s assets in the refinery business, controlled by India’s richest man, Mukesh Ambani.

A spokesperson confirmed that Facebook will allow most of its employees to continue work remotely from home until the end of 2020, and the company does not expect most offices to reopen before July 6.

The US tech giant said there are a variety of factors involved in the decision, including information from public health agencies, such as the Centers for Disease Control and Johns Hopkins, as well as government guidance.

Meantime, California has begun to ease some rules of social distancing measures in a multi-stage process made clear by Gavin Newsome state governor.

Facebook employees have been working from home since March, and the company said it will continue to pay hourly employees, who may not be able to work due to low staff, office closures, or sick cases.