Facebook Inc. shares initially rose 5% in extended trading Wednesday, to what would be a record high if gains hold up in Thursday’s regular session, after it announced better-than-expected first-quarter results.
“We had a strong quarter as we helped people stay connected and businesses grow,” Chief Executive Mark Zuckerberg said in a statement announcing the results. “We will continue to invest aggressively to deliver new and meaningful experiences for years to come, including in newer areas like augmented and virtual reality, commerce and the creator economy.”
“In the third and fourth quarters of 2021, we expect year-over-year total revenue growth rates to significantly decelerate sequentially as we lap periods of increasingly strong growth,” Wehner said in a statement. “We continue to expect increased ad-targeting headwinds in 2021 from regulatory and platform changes, notably the recently-launched iOS 14.5 update, which we expect to begin having an impact in the second quarter. This is factored into our outlook.
Facebook, like Google parent Alphabet Inc. GOOGL, +2.97% GOOG, +3.16% and Snap Inc. SNAP, +2.53% before it, benefited greatly from a wave of online advertising as more small businesses use social media and search to reach consumers during the pandemic. Advertising, which accounts for nearly all of Facebook’s sales, soared 46% to $25.4 billion.
$FB is a great investment because it's a: ✅Understandable business ✅Growing business ✅Cash cow business ✅High returns on capital business ✅Solvent business ✅Dominant business ✅Innovative business ✅Defensive business ✅Wide moat business ✅Shareholder-friendly business