Facebook’s quarterly revenue jumps 48% with strong ad demand Business and Economics News

Revenue was $ 26.2 billion in the first quarter as active users rose 10 percent to $ 2,855 million, the social media giant said on Wednesday.

Sales in Facebook Inc in the first quarter rose 48%, according to past analysts ’estimates, thanks to high demand from retailers and other advertisers who wanted to grab the attention of billions of social network users.

Revenue rose to $ 26.2 billion, the company reported Wednesday. This lowered the average analyst estimate of $ 23.7 billion, according to data collected by Bloomberg. Facebook reported 2,855 billion active users per month, an increase of 10%. Analysts forecast 2.83 billion. The shares sold about 5.5% late in the sale.

Menlo Park, which also owns California, Facebook, Instagram and WhatsApp, has increased its use of home platforms to entertain and keep loved ones at home while people have been blocked. Larger advertisers have moved more marketing budgets to social media, and small businesses have increased their digital reach while gaining potential customers. So far, the company has not seen a slowdown as consumers return to offline activities as the pandemic begins to subside.

In the March quarter, net income reached $ 9.5 trillion, a share of $ 3.30, Facebook said. Analysts had an average forecast of $ 2.34 per share.

The company’s shares closed at $ 307.10 in New York after a $ 328 long-term trading profit report. The stock gained 12% this year, slightly ahead of the S&P 500 index.

In a statement, Facebook said sales will remain stable or fast this time around from the first quarter, but cautioned that growth could stop in the second half of 2021. In the coming months, Facebook will also have a potential risk in its advertising. Apple Inc. the company adds privacy restrictions on iPhones and other devices on social media giants that could detract from the ability to collect user data, which boosts its direct advertising model.