At Facebook’s office in Washington, DC, on Wednesday, a group of critics set up an installation of body bags to protest the issue. The company, which has long been under fire from lawmakers over misinformation and other abuses on its platform, has also come under renewed scrutiny from President Joe Biden’s administration over the handling of false claims about COVID-19 on its platforms. The company continues to face pressure from global lawmakers and regulators, including from the US Federal Trade Commission which has until August 19 to refile its antitrust complaint against the company and from a group of states who said on Wednesday they would appeal the judge’s dismissal of their lawsuit.įacebook hit US$1 trillion market cap for the first time last month when the judge threw out the original complaints. Jesse Cohen, senior analyst at, called it a “blockbuster quarter” for Facebook but warned: “Growing regulatory concerns and mounting antitrust scrutiny will be major headwinds for Facebook in the months ahead as the Biden administration has made it clear it wants to rein in big tech.” FTC HAS AUGUST DEADLINE TO REFILE ANTITRUST COMPLAINT Analysts had expected a profit of US$3.03 per share. Net income in the second quarter more than doubled to US$10.4 billion, or US$3.61 per share, from US$5.18 billion, or US$1.80 per share, a year earlier. Facebook said this month it would invest more than US$1 billion to support content creators through the end of 2022. It is also on the offensive to attract top social media personalities and their fans, competing with platforms like Alphabet’s YouTube and short-video app TikTok, which recently hit three billion global downloads.
FACEBOOK TO INVEST US$1B TO SUPPORT CONTENT CREATORS The push will be key to how Facebook, which hosts more than one million online “Shops” on its main app and Instagram, can grow its ad business amid the impact of Apple’s changes.
The world’s largest social network has been ramping up its ecommerce efforts, which are expected to bring additional revenue to the company and make its ad inventory more valuable. “In the third and fourth quarters of 2021, we expect year-over-year total revenue growth rates to decelerate significantly on a sequential basis as we lap periods of increasingly strong growth,” Chief Financial Officer Dave Wehner said in the earnings release. It pointed to a US47 per cent increase in price per ad. Its revenue from advertising rose 56 per cent to US$28.58 billion in the second quarter ended June 30, Facebook said. The company’s total revenue, which primarily consists of ad sales, rose to US$29.08 billion in the second quarter from US$18.69 billion a year earlier, beating analysts’ estimates of US$27.89 billion, according to IBES data from Refinitiv.įacebook, like its peers, has seen increased demand for digital ads as the pandemic drove consumers to shop largely online, forcing several businesses to create online stores and markets using social media platforms. “Everyone will be watching any developments to their ad targeting system closely to see how that plays out given its huge role in helping Facebook monetise its apps,” said Tom Johnson, WPP Mindshare’s chief digital officer. But importantly, Facebook is the most exposed to Apple’s privacy changes, and it looks like it is starting to have an impact to the outlook beginning in 3Q,” said Ygal Arounian, an analyst at Wedbush Securities. “The user growth slowdown is notable and highlights the engagement challenges as the world opens up. “Everyone will be watching any developments to their ad targeting system closely to see how that plays out given its huge role in helping Facebook monetise its apps.” Tom Johnson, WPP Mindshare’s chief digital officer Monthly active users came in at 2.90 billion, up seven per cent from the same period last year but missing analyst expectations of 2.92 billion and marking the slowest growth rate in at least three years, according to IBES data from Refinitiv. offices to be vaccinated against COVID-19. The company also announced on Wednesday that it would require anyone working at its U.S. The iPhone maker’s privacy changes make it harder for apps to track users and restrict advertisers from accessing valuable data for targeting ads.
FACEBOOK GROWTH TO DECELERATE SIGNIFICANTLY MANDATES UPDATE
The warning overshadowed the company’s beat on Wall Street estimates for quarterly revenue, bolstered by increased advertising spending as businesses build their digital presence to cater to consumers spending more time and money online.įacebook said it expects Apple’s recent update to its iOS operating system to impact its ability to target ads and therefore ad revenue in the third quarter. Facebook Inc said on Wednesday (July 28) it expects revenue growth in the third and fourth quarters to “decelerate significantly,” sending the social media giant’s shares down about five per cent in extended trading.
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