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As social media companies’ quarterly results soar, Facebook’s Mark Zuckerberg surpasses Apple

Facebook has experienced a turbulent surge in the last quarter of 2020, but the company predicts that it will face challenges in 2021, including Apple’s upcoming privacy update, which may limit the social network’s advertising targeting capabilities.

Apple’s move prompted a rare public accusation from Facebook CEO Mark Zuckerberg, who accused Apple of favoring its own interests over the interests of users during a conference call.

Facebook said that as people stayed at home during the pandemic, its number of users in the fourth quarter has increased significantly, and it has reported revenue growth due to the shift to digital advertising due to the economic uncertainty associated with the coronavirus.

But the company predicts that there will be uncertainty in 2021, and said its revenue in the second half of the year may face tremendous pressure. Since revenue is growing so fast in the second half of 2020, social networks may struggle to keep up with this pace.

eMarketer analyst Debra Aho Williamson said: “Obviously, this epidemic continues to help Facebook maintain monthly active user growth in many regions, including the United States and Canada, where user growth has slowed before the epidemic broke out.” But she pointed out that the number of daily users in the region has declined, which shows that people in the United States and Canada are migrating to other places-possibly TikTok, which is growing rapidly in 2020.

Zuckerberg wavered in a conference call with analysts, saying that Apple is rapidly becoming one of Facebook’s “biggest competitors”, partly because of its dominance in iPhone news. Mobile platforms interfere with the way competitors’ apps work.

Apple will soon require apps to seek permission from users to collect data about the devices they use and allow ads to track them on the Internet. Facebook has been resisting these changes, saying that these rules may reduce app revenue from advertising through Facebook’s audience network.

Of course, Apple’s move also threatens Facebook’s own advertising revenue. However, Zuckerberg focused on what he thought was Apple’s motive.

Zuckerberg said: “Apple may say that they are doing this to help people, but these actions clearly show their competing interests.”

Apple also said that people should have the right to control their data. Executives refuted the arguments of advertisers and companies like Facebook, saying that anti-tracking features would harm the online advertising industry.

Apple’s head of software Craig Federighi said in December: “When intrusive tracking becomes your business model, you often don’t welcome transparency and customer choice.”

From October to December, Facebook’s profit was 11.22 billion U.S. dollars (about 820.5 billion rupees), or 3.88 U.S. dollars (about 300 rupees) per share, which was much higher than analysts’ expectations of 3.19 U.S. dollars (about 230 rupees). , A year-on-year increase of 53% was earlier. According to a survey by FactSet, revenue increased by 22% to 28.07 billion US dollars (approximately 2053 billion rupees), which was higher than the 26.36 billion US dollars (approximately 192.77 billion rupees) predicted by analysts.

Its monthly user base grew by 12% to 2.8 billion. Facebook has 58,604 employees by the end of 2020, an increase of 30% year-on-year.

Although Facebook did not disclose the revenue of its own Instagram, eMarketer estimates that the app accounts for 36% of Facebook’s total advertising revenue and nearly half of its US advertising revenue.

In after-hours trading, the Menlo Park, California-based company’s share price rose by US$1.23 (approximately Rs 90) to US$273.37 (approximately Rs 20,000). The stock price rose 33% in 2020.

Will WhatsApp’s new privacy policy end your privacy? We discussed this on the weekly technical podcast Orbital, you can subscribe via Apple Podcast, Google Podcast or RSS, download the episode, or click the play button below.

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