MIZUHO SECURITIES USA INC. | US EQUITY RESEARCH
Revisiting Our 1,000+ Person Mobile Survey On Search, Social, and Commerce
In June 2015, we conducted our first mobile survey of U.S. smartphone users, and came away with some interesting takeaways - Google dominates mobile search, Facebook is the dominant social network, and Amazon is the de facto place for mobile shopping. After nearly six months, we wanted to see how things have progressed. Amazon and eBay appear to have gained greater mind share, while Google & Facebook remain dominant on search and social. We remain bullish on FB, AMZN and GOOGL based on our second survey results.
Overall smartphone usage – In general, we found that the vast majority of people still use Google to find information – whether it is through a Google search app or directly in a browser (Chrome or Safari). Facebook Messenger is the third most popular way people communicate on their phones (after texting and calling), and 25% of people believe they are watching more videos on Facebook than YouTube.
Social Media – In general, it appears that people overall found that social media sites are increasingly useful, with Facebook and Instagram continuing to be the leading social sites. What was most interesting was that Snapchat jumped from seventh place to third place within the six months, and Twitter fell from third place to seventh place.
mCommerce – 61% of people said they primarily use Amazon when they shop on their mobile devices. eBay came in as the second most popular place to shop on mobile, with 29%. Finally, Google came in third at 25%. We believe that Amazon's Prime flywheels are in full effect - as more users join Prime, Amazon becomes the primary place where those users will shop.
We Remain Buyers of FB, AMZN and GOOGL shares. Our top picks into the 4Q holiday season include FB, AMZN and GOOGL, given our early checks with marketers and agencies. And with our recent survey results, which highlight the commanding dominance of these three companies on people's smartphone usage, we have greater conviction that these stocks could generate solid returns into 2016.
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