Facebook posted record quarterly earnings on Wednesday, beating analysts’ expectations as the company’s push towards e-commerce during coronavirus lockdowns paid off.
In the fourth quarter, the social media group’s revenue rose 33% to $ 28.1 billion, beating analysts’ expectations of an increase to $ 26.4 billion. Net income jumped 53% to $ 11.2 billion, or $ 3.88 per share.
In a statement, the company’s chief financial officer, David Wehner, said business had been boosted by “the ongoing shift to e-commerce” and “the shift in consumer demand for products and services. “.
The company made a big bet on “social commerce” in all of its applications last year as people retreated indoors under shelter-in-place restrictions. He launched Facebook stores, which allows companies to set up digital storefronts, as well as payment tools in several markets.
But Mr. Wehner added that Facebook faced “significant uncertainty” in 2021, citing the potential for reversals in the business trends that have guided its business, changes to Apple’s privacy policies that impact its ability to target advertising and “concerns regulatory ”.
The U.S. Federal Trade Commission and 46 U.S. states filed last month antitrust lawsuits against the company, accusing it of exercising its domination to crush the competition. It also faces a close review of its content moderation policies and processes following Facebook’s perceived role in facilitating the Capitol Riots and its decision to suspend former U.S. President Donald Trump’s account “indefinitely.”