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Shares of Facebook rose more than 5 percent in after-hours trading after digital ad prices rose amid rising demand, after Google said it had a dramatic pandemic-like benefit.
Mark Zuckerberg’s first-quarter earnings on social media rose 48 percent to $ 26.1 billion, beating analysts ’expectations of $ 23.7 billion.
David Wehner, chief financial officer, said quarterly revenue growth was mainly due to a 30% year-on-year increase in ad prices – a sign of high demand – and a 12 per cent increase in “number of ads delivered”.
He added: “We expect that the increase in ad revenue in the rest of 2021 will mainly affect prices.”
Facebook’s net income is 94 percent for a $ 9.4 billion sale, or a $ 3.30 share, above the $ 6.8 million or $ 2.34 share price.
It has focused its investment on video chat and new tools for online shopping, as users hungry for entertainment have been stuck at home during pandemic closures.
However, the company reiterated previous warnings this week to introduce Apple’s privacy policies, as apps and advertisers prohibit the collection of data about iPhone users without their express permission.
It means they will refuse to track most users, giving Facebook app developers a blow, as it relies on selling personalized ads. Wehner said Facebook expected Facebook to “take effect in the second quarter” from the changes aimed at “headwinds against ads”.
Shares of Facebook rose 5.4 percent shortly after the earnings were posted, and set a record.
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