The social media giant Facebook, which for the first time crossed a trillion.dollar market value this year, published its financial results for the second quarter of the year. Analysts surveying the company expected a jump of almost 50% in revenue and a jump of close to 70% in earnings per share.
Early market forecasts predicted adjusted earnings per share to be $ 3.04 – compared to $ 1.80 in the second quarter of 2020. In addition, revenue was expected to be approximately $ 27.89 billion.
In practice, the results were even better than predictions. Revenue totaled about $ 29 billion and earnings per share reached $ 3.61. The company’s net profit jumped 101% to $ 10.39 billion.
Bottom line, Facebook revenue grew 56% compared to the same period last year, the fastest growth since 2016.
Analysts surveying the company also commented on the growth rate of its monthly active users, estimating that the figure will grow by 7.3% (a relatively slow rate in recent years) and stand at 2.91 billion active users. In practice, the number of users reached 2.9 billion.
The stock has soared 40% since the beginning of the year
Facebook Experienced growth in profits and revenue during the Corona plague, as people spent more time on social media. The social network also deals with virtual and augmented reality, to create digital worlds that several people can stay in at the same time – Facebook calls these virtual worlds Metaverse. This technology can attract more users and increase the growth rate of the social network.
Facebook stock has been volatile in the past year. After trailing behind in early 2021, it began to soar in late March. Since January, the share of Facebook has risen by almost 40% – a higher rate than that of the Nasdaq (which rose by about 15%) and that of the competitor Twitter (Which rose by almost 30%).
Technology giant Facebook is currently facing an update to Apple’s version, which went into effect about three months ago. Facebook has said that updating the version that includes App Tracking Transparency will hurt its ability to advertise in a targeted manner for users – which will result in severe harm to small businesses because the latter will not be able to offer their services in a targeted manner. Facebook has expressed concern that most users have turned off tracking options.
In the last quarter, Facebook has continued to face different countries in regulatory matters. India’s new IT laws have also caused some changes in the country, as well as bills that have surfaced in the United States calling on giants like Facebook and Twitter to take responsibility for disseminating misinformation about corona vaccines or other public health conditions. The legal protection of social networks will decrease if they breach their responsibilities, as will the European Commission and the UK Competition Authority, which have launched separate investigations against Facebook on suspicion of uncompetitive behavior and more. As part of a fight in Corona, Facebook was forced to respond to US President Biden attacking her for “killing people” because she did not remove Corona.related Pike News.
One of Facebook’s biggest fights today is with the chairman of the FTC (Federal Trade Commission) in the United States. Facebook has decided to act similarly to Amazon and has asked the Federal Trade Commission to exempt US Commission Chairman Lina Kahn from the cases against the company – because she Has delivered a major critique of the technology giant and it cannot be objective.
By the way, a federal court in the District of Columbia dismissed the Federal Trade Commission’s complaint against Facebook last month. A complaint should show that Facebook has a significant advantage in the market and that it holds monopolistic power in the market. The court ruled that the Federal Trade Commission did not provide enough information and data to prove that Facebook was a monopoly in the market.