Facebook caps off 2020 on solid footing, but economic trends will be pivotal this year

Shawn Knight

Posts: 13,441   +132
Staff member
Bottom line: Facebook closed out one of the strangest years in recent memory on a positive note thanks to two key economic trends that emerged during the pandemic. Depending on how things play out over the coming months, we could either see more of the same or a slowdown in advertising revenue growth.

For the three-month period ending December 31, 2020, Facebook raked in $28.1 billion in revenue, an increase of 33 percent year over year.

Net income, meanwhile, reached $11.2 billion, up 53 percent from the $7.3 billion generated during the same period a year earlier. Diluted earnings per share were $3.88, a healthy 52 percent gain compared to the $2.56 from the year-ago quarter.

Daily active users reached 1.84 billion on average during December, up 11 percent year over year, while monthly active users hit 2.80 billion by the end of the quarter, representing a 12 percent increase compared to the end of 2019.

Facebook identified two broad economic trends that may have helped the company during the pandemic: an ongoing shift towards online commerce and a shift in consumer demand towards products and away from services like travel.

“Looking forward, a moderation or reversal in one or both of these trends could serve as a headwind to our advertising revenue growth,” said CFO David Wehner.

The executive said Facebook also expects to face significant headwinds with regard to ad targeting in 2021 due to the impact of platform changes, “notably iOS 14,” and the evolving regulatory landscape. With iOS 14 specifically, Wehner said they expect to see an impact starting in the latter portion of the first quarter.

Images courtesy Laura Hutton, Anikei

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QuantumPhysics

Posts: 5,229   +5,938
Considering what we just witnessed happening to Gamestop (trading at $153), there's literally nothing to stop angry trolls from manipulating social medias they don't like - nor any other company.

Especially if they feel angry or intimidated by censors.
 

mirgc

Posts: 16   +23
Considering what we just witnessed happening to Gamestop (trading at $153), there's literally nothing to stop angry trolls from manipulating social medias they don't like - nor any other company.

Especially if they feel angry or intimidated by censors.

Interesting point; change "stocks and options" to "people and data", or something similar, and the manipulation of the social market (public being influenced being the "gains or loses" for those in power) and it's probably not a bad analogy.
 

Uncle Al

Posts: 8,167   +6,925
Looks like GameStop is starting to get pummeled by the profit takers this morning .... we'll see what the rest of the day brings. In any case, if the investigations continue as stated I think you'll start to see a pruning of the high tech stocks due to the political climate and any legislative changes that strip them of their "immunities" from what their users do.
 

QuantumPhysics

Posts: 5,229   +5,938
Looks like GameStop is starting to get pummeled by the profit takers this morning .... we'll see what the rest of the day brings. In any case, if the investigations continue as stated I think you'll start to see a pruning of the high tech stocks due to the political climate and any legislative changes that strip them of their "immunities" from what their users do.


The interesting thing about a pump and dump is that if you can get in during the initial pump, and out before the dump, you can win.
 

tellmewhy

Posts: 102   +50
The Facebook should put an option to allow users set their profiles visible to only to one gender.

End to end encryption to messenger without data logs stored on servers is a plus too. Nobody like the idea to chat and what they say with an other stay for ever stored somewhere.
 

p51d007

Posts: 2,832   +2,183
Funny though, they aren't making any ad revenue off me. It took about a month a couple years ago, but I see not one ad on Fakebook.