rainn.png
Wednesday December 8th, 2021 6:50AM

Facebook reports soaring quarterly ad revenue, stock jumps

By The Associated Press
Related Articles
  Contact Editor

Facebook's stock jumped Wednesday into record territory after the social media giant reported stronger-than-expected results for the first quarter thanks to soaring ad revenue.

CEO Mark Zuckerberg said the extra money means the company will invest more in new areas of potential growth — including augmented and virtual reality, commerce, business messaging and content creators, such as people who make videos, write newsletters and host podcasts.

“I believe that augmented and virtual reality are going to enable a deeper sense of presence and social connection than any existing platform," he said in a conference call with analysts. He added that this accounts for a “major part" of Facebook's research and development budget growth.

Facebook is also expanding its e-commerce offerings and the use of its messaging services for businesses. As for the creator economy, the company is getting into audio, podcasts and independent publishing similar to Substack.

The company said it earned $9.5 billion, or $3.30 per share, in the January-March period. That's up 94% from $4.9 billion, or $1.71 per share, a year earlier.

Revenue grew 48% to $26.17 billion from $17.44 billion.

Analysts, on average, were expecting earnings of $2.35 per share and revenue of $23.73 billion, according to a poll by FactSet.

The average price of ads on Facebook grew 30% from a year earlier, while the number of ads increased by 12%.

Facebook had 2.85 billion monthly users, on average, in March. That's up 10% from a year earlier. Its family of apps — Facebook, Instagram and WhatsApp — had monthly users of 3.45 billion in March. That's the number of people who logged in to at least one of the apps during the month.

In January, the company predicted uncertainty for 2021, saying its revenue in the latter half of the year could face significant pressure. Because revenue grew so quickly in the second half of 2020, Facebook could have trouble keeping up that pace. This uncertainty is now baked into the company's forecast, so it didn't come as a surprise to investors.

Shares of the Menlo Park, California-based company rose 6% to $325.75 in after-hours trading. If the gains hold in Thursday's regular trading session, it will mark a record high for the stock, which is up 12% so far this year.

On Monday, Apple rolled out a new privacy feature, dubbed “App Tracking Transparency,” as part of an update to the operating system powering the iPhone and iPad. It came after a seven-month delay during which the iPhone maker and Facebook attacked each other's business models and motives for decisions that affect billions of people around the world.

Until the new feature, Facebook and other apps have been able to automatically conduct their surveillance on iPhones unless users took the time and trouble to go into their settings to prevent it — something not many people did.

While Facebook spent months fighting the change, Zuckerberg recently suggested that the new privacy controls could actually help his company in the long run. His rationale: The inability to automatically track iPhone users may prod more companies to sell their products directly on Facebook and Instagram if they can’t collect enough personal information to effectively target ads within their own apps. This would help Facebook's bottom line, of course.

Facebook said Wednesday it expects its second-quarter 2021 revenue growth to stay stable or “modestly accelerate” compared with the growth rate in the first quarter. The Apple update is already factored into this guidance.

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Corporate News, AP Technology News
© Copyright 2021 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Feds raid Giuliani's home, office, escalating criminal probe
A law enforcement official tells The Associated Press that federal investigators have executed search warrants at Rudy Giuliani’s Manhattan residence and office
5:00PM ( 7 minutes ago )
Video: Chicago man had gun, back turned when police shot him
Newly released video shows that a 22-year-old Chicago man who was fleeing from police had his back turned and appeared to have a gun when an officer fatally shot him
4:55PM ( 12 minutes ago )
Fed keeps key rate near zero, sees inflation as 'transitory'
The Federal Reserve is keeping its ultra-low interest rate policies in place, a sign that it wants to see more evidence of a strengthening economic recovery before it would consider easing its support
4:52PM ( 15 minutes ago )
Associated Press (AP)
Supreme Court affirms block of key PolyMet mine permit
The Minnesota Supreme Court has handed a victory to environmentalists in the long-running battle over the proposed PolyMet copper-nickel mine
4:15PM ( 52 minutes ago )
Stock indexes slip after Federal Reserve leaves rates alone
Major U.S. stock indexes ended slightly lower on Wall Street after the Federal Reserve left its key interest rate unchanged near zero, even as it noted recent improvement in the economy
4:07PM ( 1 hour ago )
US will pay $44 million in age-bias case by ex-FAA workers
The federal government will pay nearly $44 million to settle claims made 16 years ago that it discriminated against hundreds of older workers by outsourcing their jobs to the private sector
4:05PM ( 1 hour ago )
AP Business
Boeing posts 1Q loss, takes a hit on Air Force One work
Boeing is posting another loss as the pandemic continues to undercut demand for new planes and the company deals with more problems around its 737 Max jetliner
1:18PM ( 3 hours ago )
The Latest: South Africa resumes J&J shots to health workers
South Africa has resumed giving the Johnson & Johnson vaccine to health care workers after a more than two-week pause
12:29PM ( 4 hours ago )
Stocks pause as investors gauge earnings, await Biden speech
Stocks were little changed in midday trading on Wall Street as investors take in a big wave of earnings reports from major U.S. companies
11:50AM ( 5 hours ago )
AP Business - Corporate News
China to launch Heavenly Harmony space station core module
China plans to launch the core module for its first permanent space station this week
9:48AM ( 7 hours ago )
EXPLAINER: China prepares space station core module launch
China plans to launch the core module for its first permanent space station this week
3:36AM ( 13 hours ago )
Google's Q1 ad sales surge 32%, Alphabet profit doubles
Google’s digital advertising network has shifted back into high gear after an unprecedented reversal during the early stages of the pandemic
6:38PM ( 22 hours ago )
AP Technology News
Feds raid Giuliani's home, office, escalating criminal probe
A law enforcement official tells The Associated Press that federal investigators have executed search warrants at Rudy Giuliani’s Manhattan residence and office
5:00PM ( 7 minutes ago )
Video: Chicago man had gun, back turned when police shot him
Newly released video shows that a 22-year-old Chicago man who was fleeing from police had his back turned and appeared to have a gun when an officer fatally shot him
4:55PM ( 12 minutes ago )
Fed keeps key rate near zero, sees inflation as 'transitory'
The Federal Reserve is keeping its ultra-low interest rate policies in place, a sign that it wants to see more evidence of a strengthening economic recovery before it would consider easing its support
4:52PM ( 15 minutes ago )
Apple profit soars in latest quarter on higher iPhone sales
Demand for the iPhone led Apple's profits to more than double in the January-March period as the tech giant continued to capitalize on smartphone addiction
4:42PM ( 25 minutes ago )
Astronaut Michael Collins, Apollo 11 pilot, dead of cancer
Apollo 11 astronaut Michael Collins has died at age 90
4:40PM ( 27 minutes ago )