Facebook Inc. recorded record revenue and profits in the fourth quarter as online holiday shopping during a pandemic and increased use of its platform helped boost the advertising business’s surge.
Social media giants generated $ 28.70 billion in revenue from $ 21.08 billion in the final quarter of 2019. Facebook’s earnings were up 52% to $ 11.22 billion, or $ 3.88 per share. Both measurements far exceed analysts’ expectations.
The latest results can also raise concerns among critics about the market power exercised by the parent companies of Facebook, Instagram and WhatsApp.
Facebook has cited recent European regulatory developments and expected ads targeting headwinds as a serious threat.
The company also faces other challenges. Last month, the Federal Trade Commission and 46 states filed antitrust proceedings against Facebook, accusing them of buying and freezing small startups and hindering competition. Facebook challenged the allegations made in the proceedings, described them as revisionist history, and defended the acquisition as good for competition, advertisers, and consumers.
Facebook Advertising Business Lifts Social Media Giants to Record Revenue
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