Shares of Facebook jumped on Wednesday after the social media giant reported stronger-than-expected results in the first quarter due to rising advertising revenue.
The company said it earned $ 9.5 billion, or $ 3.30 a share, in January-March. That is 94% more than $ 4.9 billion a year ago, or $ 1.71 per share.
Revenue rose 48% to $ 26.17 billion from $ 17.44 billion.
According to a FactSet poll, analysts expected, on average, a profit of $ 2.35 per share դոլար $ 23.73 billion.
The average price of advertising on Facebook increased by 30% compared to the previous year, while the number of ads increased by 12%.
Facebook had 2.85 billion monthly users in March. This is 10% more than last year. His family of apps, Facebook, Instagram and WhatsApp, had 3.45 billion monthly users in March. That’s the number of people who sign up for at least one of the programs during the month.
In January, the company forecast uncertainty in 2021, saying that in the second half of the year its revenue could be under significant pressure. As revenue grew so fast in the second half of 2020, Facebook could have trouble keeping up. This uncertainty is now perceived in the company’s forecast, so it was not a surprise to investors.
Shares in Menlo Park, California, rose nearly 6 percent after the trade ended.
On Monday, Apple unveiled a new privacy feature called Trans-Tracking Transparency as part of an update to the operating system that powers the iPhone and iPad. It came seven months after the iPhone maker և Facebook attacked each other’s business models ումների decision-making motives affecting billions of people around the world.
Prior to the new feature, Facebook և other apps were able to automatically take control of their iPhones, as long as users did not have time մտ to enter their settings to prevent it, which many people did not.
While Facebook has been spending months fighting change, CEO Mark Uck Uckerberg recently suggested that new privacy controls could really help his company in the long run. His substantiation. The inability of iPhone users to automatically track back can lead more companies to sell their products directly on Facebook և Instagram if they are unable to gather enough personal information to effectively target ads in their own apps. This, of course, would help Facebook’s main line.
Facebook said on Wednesday that it expects revenue growth in the second quarter of 2021 to be steady or “modestly accelerated” compared to the growth rate in the first quarter. Apple Update is already included in this guide.