Facebook reported on Wednesday that the surge in advertising sales boosted profits and revenues, but warned that regulatory and technological changes could face “headwinds” in the future.
Fourth-quarter social network revenue increased to $ 28 billion, up 33% year-over-year, above Wall Street estimates. Profit was up 53% to $ 11.2 billion.
Facebook’s business has grown despite addressing multiple controversies. While criticism has been given to the dissemination of false information throughout the platform and the impact of those falsehoods on users, regulators are increasingly concerned about its immense power.
In December, the Federal Trade Commission and more than 40 states accused Facebook of buying rivals and illegally crushing competition. This month, Facebook has offended conservatives and others by banning his account because of the incitement to violence by former President Donald J. Trump.
Nevertheless, the company continued to attract new users. The number of regular monthly users of Facebook apps (including Instagram, WhatsApp and Messenger) in the fourth quarter exceeded 3.3 billion, a record high. According to the company, about 2.6 billion of them use one of Facebook’s apps every day.
Facebook’s business was booming as more people bought products online during the pandemic after the first ad crash in March, executives said. The company said it expects that trend to continue.
Jesse Cohen, a senior analyst at Investing.com, said:
Facebook said one area of uncertainty is potential regulation, especially in Europe. The company is closely monitoring Irish rulings that may ban the transfer of data about European Union users to the United States. Executives also said they were concerned about the changes Apple made to iOS, the mobile operating system, to track apps that could interfere with some of Facebook’s ad targeting tools.
Facebook also said it is no longer recommending political organizations to users and is working on ways to reduce the amount of political content displayed in users’ news feeds. According to the company, the action is based on user feedback, and users don’t want the political struggle to be a Facebook-wide experience.
In the statement, Facebook CEO Mark Zuckerberg was positive.
“We have reached a strong end of the year as people and businesses continue to use our services during these difficult times,” he said. “We are excited about the 2021 product roadmap. We are building new and meaningful ways to create financial opportunities, build communities and help people just have fun.”
Facebook has posted a 33% increase in revenue and a 53% increase in profit.
Source link Facebook has posted a 33% increase in revenue and a 53% increase in profit.