Wal-Mart has created a Facebook application that scours users' comments and newsfeed to come up with gift suggestions. Developers say the Shopycat app has been through rigorous testing to weed out glitches that saw an early version recommend toilet paper as a suitable gift for an ad-agency executive. "Gifting is fundamentally a social activity. It's about people connecting with other people through products," said Venky Harinarayan, co-head of Wal-Mart's social commerce unit.

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