Facebook beats 2nd quarter revenue expectations even as ad industry struggles
Pretty much every business suffered in 2020's second financial quarter. Well, except Facebook.
The COVID-19 pandemic had a devastating effect on the U.S. GDP, pushing it down 9.5 percent from the first quarter and 32.9 percent from the year before. But Facebook's revenue still grew 11 percent from Q1 to Q2, beating economists' expectations, the company revealed Thursday.
Facebook's 11 percent revenue growth is the smallest quarterly growth it has seen since it became a public company. Previously, its first quarter growth of 18 percent was its smallest. But on average, analysts only expected Facebook's revenue to grow to $17.3 billion in Q2, making its $18.6 billion reality a win, Bloomberg notes. Facebook's profit growth of $5.18 billion also meant shareholders made out well with a $1.80 gain per share, beating estimates of $1.39.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
The growth came even though Facebook started facing a major advertiser boycott in July. Coca-Cola, Starbucks, Unilever, and other huge companies stopped buying ads on Facebook and other social media sites over their failure to appropriately combat hate speech on their platforms.
Facebook CEO Mark Zuckerberg appeared before Congress on Wednesday for an anti-trust hearing, where he faced questions about how the company's digital ad model contributed to the decline of local news, and also Twitter, for some reason.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Kathryn is a graduate of Syracuse University, with degrees in magazine journalism and information technology, along with hours to earn another degree after working at SU's independent paper The Daily Orange. She's currently recovering from a horse addiction while living in New York City, and likes to share her extremely dry sense of humor on Twitter.
-
The Week contest: Airport goodbyes
Puzzles and Quizzes
By The Week US Published
-
'We shouldn't be surprised that crypto is back'
Instant Opinion Opinion, comment and editorials of the day
By Justin Klawans, The Week US Published
-
How the national debt affects your finances
Rachel Reeves has changed the rules, but why does that matter?
By Marc Shoffman, The Week UK Published
-
Boeing machinists reject deal, continue strike
Speed Read The rejection came the same day Boeing reported a $6.2 billion quarterly loss
By Peter Weber, The Week US Published
-
Ports reopen after dockworkers halt strike
Speed Read The 36 ports that closed this week, from Maine to Texas, will start reopening today
By Peter Weber, The Week US Published
-
Empty-nest boomers aren't selling their big homes
Speed Read Most Americans 60 and older do not intend to move, according to a recent survey
By Peter Weber, The Week US Published
-
Brazil accuses Musk of 'disinformation campaign'
Speed Read A Brazilian Supreme Court judge has opened an inquiry into Elon Musk and X
By Rafi Schwartz, The Week US Published
-
Disney board fends off Peltz infiltration bid
Speed Read Disney CEO Bob Iger has defeated activist investor Nelson Peltz in a contentious proxy battle
By Rafi Schwartz, The Week US Published
-
Disney and DeSantis reach detente
Speed Read The Florida governor and Disney settle a yearslong litigation over control of the tourism district
By Peter Weber, The Week US Published
-
Visa and Mastercard agree to lower swipe fees
Speed Read The companies will cap the fees they charge businesses when customers use their credit cards
By Peter Weber, The Week US Published
-
Reddit IPO values social media site at $6.4 billion
Speed Read The company makes its public debut on the New York Stock Exchange
By Peter Weber, The Week US Published