Get 40% Off
😲 Missed the +20.8% surge in our stock strategy last month? Not again! Get premium insightsGet 40% Off

Facebook Falls As It Warns Revenue Growth May Slow Significantly

Published 29/07/2021, 12:08
Updated 29/07/2021, 12:08
© Reuters.

© Reuters.

By Dhirendra Tripathi

Investing.com – Facebook (NASDAQ:FB) stock was down more than 3% in Thursday’s premarket trading after the company warned of revenue growth slowing down significantly in the ongoing third and next quarter.

Social media and online platforms have had a scorching run last one year as pandemic-struck users logged on like never before, not just to share their personal lives, but also to watch content and shop while staying home due to fear of stepping out in public. That dynamic is widely expected to weaken as economies reopen and people return to work and life as usual.

“We expect year-over-year total revenue growth rates to decelerate significantly on a sequential basis as we lap periods of increasingly strong growth,” Facebook chief financial officer David Wehne said in a release announcing its second-quarter results.

Wehne spoke of more challenges coming Facebook’s way, most notably the recent update to Apple's (NASDAQ:AAPL) privacy policy which makes it tougher for apps to track users and source their personal data for targeting them with their ads.

He said the iPhone-maker’s iOS updates will have a greater impact in the ongoing quarter than in the second quarter.

The comments outweighed the many positives the second-quarter numbers threw up including a 56% jump in advertising revenue and 7% rise in both daily and monthly active users at the social media giant.

Total revenue rose 56% to $29.07 billion, driven by companies turning more to digital platforms to sell their wares to individuals.

Diluted earnings per share more than doubled to $3.61 from $1.80, topping analysts’ expectation of $3.04.  

 

 

 

 

Latest comments

yes
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.