Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.
The surge in Facebook revenue in Q1 can be attributed to a 30% rise in the average price per advertisement.
The American social network Facebook Inc ( NASDAQ: FB) has recorded a 48% increase in its revenue for the 2021 first quarter (Q1) earnings report which does not include any Bitcoin investment. The company announced the $26 billion revenue gain in a report published on the 28th of April. Following the earnings announcement, FB stock climbed more than 7% in the pre-market trading.
Increased Advertising Price Boost Facebook Revenue by 48% in Q1
Additionally, FB said the changes in the policy may lead to a 50% decrease in the audience network advertising business, which makes up less than 10% of the company’s revenue. The company has prepared for the inevitable changes by launching more commercial products. The CEO of Facebook Mark Zuckerberg says the company boasts of 1 billion monthly active users who use the marketplace service to buy and sell goods. Zuckerberg explaining why commerce is a growing business said:
“Commerce have been growing in our services for a while, but it has become a lot more important as the pandemic has accelerated a broader shift towards businesses moving online.”
Speaking on the payment feature that FB plans to introduce, he stated that “building out payment technology, including the diem digital currency and Novi digital wallet, will be key to enabling more commerce on Facebook’s services.”
Facebook Posted No Bitcoin Investment
Despite rumors on its Bitcoin investment, social media giant Facebook mentioned no official confirmation of its Bitcoin holdings in its Q1 report. Bitcoin investor Alistair Milne instigated earlier assumptions about Facebook’s BTC holding. Milne posted a tweet that resulted in thousands of new stories. He first got the rumor from a screenshot of an email from someone at Lansdowne Partners. The rumor quickly gained traction because of the company’s interest in the crypto space back in 2019. At the time, Facebook launched Libra, a new digital currency that later became unsuccessful.
Facebook anticipates a continuous growth in its revenue in its second quarter compared to the previous year due to the global outbreak. However, the company expects a decline in revenue in its third and fourth quarter.
Furthermore, Zuckerberg talked about other features Facebook is developing for content creators to make money. He stated that the features would be a motivation to post more content on the app.
At press time, FB stock is trading at $328.91, a 7.10% gain from its previous close. The company has seen a constant increase in the last year. It has climbed 50.02% in the last twelve months and advanced further by12.42 % in its year-to-date record. In addition, Facebook stock has jumped 15.89% in the last three months and 2.83% over the past month. In the last five days, Facebook stock has risen 3.57%.