Facebook Inc.’s stock price initially rose 2%, but it was flat in after-hours trading on Thursday. Prior to the company’s third-quarter earnings report, it was still strong despite many criticisms, including a boycott in July. The voyage provided strong evidence.
Social network giant FB,
Reported revenue increased by 22% to 21.47 billion US dollars from 17.65 billion US dollars a year ago. Net income was $7.85 billion, or $2.71 per share, compared with $6.1 billion in the same period last year, or $2.12 per share.
Monthly active users, the main barometer of attracting advertisers, increased by 12% to 2.74 billion.
Read more: Facebook has been working hard to clean up content before it becomes profitable
FactSet previously expected earnings per share of $1.90 and revenue of $19.8 billion.
More importantly, Facebook Chief Financial Officer David Wehner said in a prepared statement that he expects the company’s fourth-quarter advertising revenue growth rate to be “higher than our reported growth rate for the third quarter of 2020, which is Due to the continued strong demand from advertisers during the holiday season.” “
But Wehner did warn that “significant obstacles to targeting and measurement in 2021” include “unfavorable factors brought about by platform changes, especially Apple iOS 14 and the adverse effects of the changing regulatory environment.”
At the time of the financial and political turmoil that led to D-Day (the November 3rd election), Facebook’s resistance to the boycott showed a clear path. The company’s political content on its social media platforms has been severely criticized and launched a boycott of advertisements in July, including more than 1,000 companies such as Microsoft Corporation (MSFT).
Verizon Communications Inc. VZ,
And Danny Company because,
eMarketer analyst Debra Aho Williamson said: “Since the withdrawal of advertisers from the early pandemic, marketers have withdrawn advertising in all media to redo messaging or save money, and since the July advertising boycott, Facebook has achieved A good rebound,” said eMarketer analyst Debra Aho Williamson. “Despite the challenges of electoral turmoil and content control, it is still the first choice for advertisers seeking to attract a broad consumer base.”
Nevertheless, Facebook’s resilience has not been compromised in any way. Competitor Pinterest Inc.
And Snap Inc. SNAP,
Both companies reported on the ad sales of companies that abandoned Facebook in July and suggested that they can maintain these customers for the long term.
MKM Partners analyst Rohit Kulkarni (Rohit Kulkarni) said in a report on Thursday: “We believe that this epidemic has caused consumers to shop online and how social media can play a better role in future shopping. A fundamental change in the big role.” “Moreover, we believe that the post-pandemic trend Pinterest has recently observed is just the beginning of a long-term virtuous circle between user growth, user engagement, advertiser demand, and monetization.
Kulkarni raised the target price of Pinterest stock from $35 to $66 and is optimistic about Pinterest’s improvements to the platform. In the most recent record, Kulkarni pointed out that digital advertising spending has increased due to the overall economic rebound in the third quarter.
Read more: Opinion: The pandemic has already sent people to Pinterest and Snap, which could be a bad sign for Facebook
Read more: Boycotting Facebook ads may bring more rewards to the company than advertising on Facebook
Facebook’s stock price has risen 37% in 2020, and the broader S&P 500 index SPX,
This year it has increased by 2.5%.