After Facebook announced its fourth-quarter earnings, its shares rose. The figures announced by the company are as follows:
Earnings: $ 3.88 per share (expectation: $ 3.22 per share)
Profit: $ 28.07 billion (Expectation: $ 26.44 billion)
Daily active users: 1.84 billion (expectation: 1.83 billion)
Monthly active users: 2.8 billion (expectation: 2.76 billion)
Average Profit Per Capita: $ 10.14 (Expectation: $ 9.49)
In a statement made by Facebook CEO Mark Zuckerberg, he said that the company is considering taking steps to reduce political content in the news stream of Facebook users. Zuckerberg also said: “We are seeing a lot of comments from our users who do not want to see political content and discussions on Facebook.” said.
At the same time, Zuckerberg’s remarks made it clear that the company would completely stop recommending political groups to users around the world. Facebook’s decision came after it temporarily stopped promoting similar groups to its users in the United States during the 2020 US presidential election. Regarding this decision, Zuckerberg stated as “Continuing our work to reduce growing revenue and avoid divisive discussions. “
In the statement made by the company, it was also reported that the trend towards online commerce has benefited positively due to the 2020 pandemic. However, it was warned that the fall or slowdown of the pandemic could negatively affect the growth of the advertising revenue of the company.
Facebook also announced that they expect Facebook to negatively impact ad targeting at the end of the first quarter, with the privacy update brought by Apple to the iOS 14 operating system. On the matter, Zuckerberg said that Facebook began to see Apple among its biggest competitors.
Zuckerberg said: ‘Apple may say that it is doing the upgrade for the benefit of its users, but these moves certainly match its competitive interests. For the foreseeable future, Facebook and other similar companies will be affected by this update. ‘ said.
Facebook also reported a decrease in the number of users in the US and Canada. The number of daily users in the United States and Canada fell from 196 million to 195 million. Therefore, Facebook has lost users in the United States and Canada for two consecutive quarters.
Facebook loses users in North America and gains users in Europe. The number of daily active users of the platform in Europe reached 308 million. This is the first time that the number of users remains at 305 million users in three quarters.
The company also claimed that it reached 3.30 billion users with apps like Instagram, Messenger, and WhatsApp. This figure was 3,210 million in the previous quarter.
Facebook’s other revenue in the fourth quarter reached $ 885 million, an increase of 156 percent compared to last year. Other company revenues include Oculus, a virtual reality headset, and Portal, a video chat device. It was claimed that the goal of people staying home and being able to communicate more with their family members due to the pandemic had a positive effect on sales.