Sunday, September 08, 2013

Are Facial Recognition Stocks Staring You in the Face?

You may have seen the term 'facial recognition' in the new recently, for several different reasons. Facial recognition is the technological process automatically identifying a person from a digital image or a video, by comparing comparing facial features to an extensive facial database. 3D facial recognition is the latest trend, which is more accurate and can be used with profiles of faces. Facial recognition systems are employed by law enforcement, national security governmental agencies, casinos, banking, mobile devices, and even social media.
A Slap in the Facial Recognition Industry
Facebook (FB), which utilizes facial recognition, was criticized by the German government which outlaws such usage, since facial recognition is now mentioned in Facebook's latest privacy policy. A year ago, Facebook removed the software for European users, but wants to reactivate it again. And just a couple months ago, Congress pressured Google (GOOG) to leave out facial recognition software in the 'Google Glass' smart glasses.
Through the Looking Glass of Facial Recognition Stocks
According to, ther are about a dozen stocks involved in facial recognition technology, with some having it as a small part of their business and a few pure plays. Some of the other major players include 3M (MMM), which has the Cogent BioTrust biometric logon software and the CAFIS facial recognition authentication system, Apple (AAPL), which has the iPhoto software Faces and the Polar Rose facial recognition company, and Safran (SAFRY), which owns L-1 Identity Solutions.
As for companies that are more pure plays, there is Nxt-ID, Inc. (NXTD), a Shelton, Connecticut company which provides biometric solutions for the law enforcement facial recognition markets. The company has MobileBio FaceMatch, a modular facial recognition system for smartphones, tablets, laptop, and desktop computers, and 3D FaceMatch Biometric Identity Systems, which combines 3D facial recognition, 2D facial recognition, and optional fingerprint biometrics. This very low cap stock generated a loss of three cents a share for the latest quarter.
To access a free list of all the companies with some involvement in the facial recognition industry, go to Although there are many privacy issues, this is a growth industry of the future.
Disclosure: Author owns AAPL.

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