With adding more advertisers and continuing to boost its core business, Facebook Inc. has been ablative of the almost-slavish dependence on advertising during the COVID-19 pandemic.
The company is receiving high revenue and ridiculous profit with its booming advertising scheme.
Analysts anticipated huge numbers from Facebook for the first three months of the year, and it didn’t disappoint. In fact, according to the social media giant’s figures posted Wednesday, the company just had the best first quarter in its history, with $26.1 billion in revenue.
“Because of the strong demand for advertising, you’re seeing an ability for companies to raise prices,” said D.A. Davidson analyst Tom Forte.
“The past year’s trend of people spending more time and money online and advertisers redirecting their resources to take advantage of that policy”, stated by social media giant. Due to this pandemic, people are coming forward and taking their business online. They spent most of their time on social media, researching what might be helpful for their business and when they find what they want they are willing to pay any price. The organization releases new features time to time in the span of one year; be it related to Facebook or Instagram or whatsapp.
Revenue performance at Facebook, which beat expectations of $23.67 billion by a notable margin of almost $3 billion, showed growth of 48 percent over the $17.7 billion in the same period in 2020. Net income of $3.30 a share amounted to $9.5 billion, easily topping expectations of $2.33 a share, and soared past last year’s $4.9 billion by 94 percent.
If you look at the history of computing, every 15 years or so a new major platform emerges that integrates technology more naturally and ubiquitously into our lives — starting with mainframes, then PCs, then browser-based computing, and then mobile,” Zuckerberg said in a conference call with analysts. “I believe that the next logical step here is an immersive computing platform that just delivers this magical sense of presence — that you’re really there with another person or in another place.”
How much so? “The big milestone that I’m focused on here is we want to get to 10 million active units in our VR systems because we think at that point, that’s when it will become (in three to five years),” Zuckerberg said in October 2020, in another call with analysts.
Messaging is king on Facebook FB, +1.16% and subsidiary Instagram despite a pandemic and a largely ceremonial advertising boycott in July 2020 because, quite simply, the platform is so effective in delivering information doesn’t matter accurate or not. Consider misinformation on coronavirus and vaccines, which has been gushing like a fire hose for more than a year, as Facebook makes statements about stamping it out.
No matter if the information is good or bad, Facebook continues to draw users to its platforms to see it, as well as its real customers: advertisers. The proof is in the numbers: In late 2019, before the pandemic gripped the U.S. economy, Facebook reported 7 million advertisers and 140 million businesses using its services; as of Jan. 27, 2021, following its fiscal fourth-quarter earnings report, it was 10 million advertisers and 200 million businesses.