The stock’s tumble reflects investor concern that Facebook’s robust sales growth and user additions during the pandemic may ease up as people spend less time on their phones and laptops.įacebook has been telling investors that Apple’s new restrictions on data collection on iPhones, which require users to explicitly allow app makers to track their activity, could curb future growth by hampering its ability to sell targeted advertising - a crucial Facebook tool that has given it an edge with large brands and small businesses looking to reach precise groups.
The company’s user numbers in the US and Canada were unchanged from the prior quarter. In a statement, Facebook reported 1.91 billion daily active users for its flagship social network, just matching projections. The warning came as the company reported quarterly sales climbed 56 per cent to $US29.1 billion ($39.4 billion), compared with the $US27.9 billion average estimate of analysts, according to data compiled by Bloomberg.
Monthly active users came in at 2.90 billion, up 7 per cent from the same period last year but missing analyst expectations of 2.92 billion and marking the slowest growth rate in at least three years. The social media giant said it faces “ad targeting headwinds in 2021 from regulatory and platform changes”, sending the shares down as much as 5.2 per cent in extended trading. Facebook reported higher second-quarter sales and profit but struck a cautious tone looking ahead, saying growth could stall as Apple’s new rules pinch data collection on mobile devices and as pandemic-fuelled advertising gains subside.
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