As a consequence, advertising on the platform would be both less relevant and less valuable to advertisers.Īccording to a study by Flurry Analytics, a few weeks after the update, only 5% of U.S. Without use of IDFA, Facebook’s ability to target ads for individual users is weakened. The process provides data on the efficacy of the advertisements. FB then checks to determine whether that IDFA viewed an ad for the corresponding product on Facebook or Instagram. Retailers share the IDFA with Facebook following an online purchase.
#AVENGER VST FACEBOOK UPDATE#
The update will block apps and websites from collecting data from a random device identifier known as Identifier for Advertisers (IDFA).
#AVENGER VST FACEBOOK SOFTWARE#
The House Judiciary Committee has already begun this process, recently approving six bills with goals to either break up or competitively constrain large tech companies.Ī second concern is that in mid April, Apple released the iOS14.5 software update that requires users to opt in to allow advertisers the use of data acquired by Facebook on iPhones and other devices. Consequently, FB could faceĬhanges to the antitrust laws that could result in close review of the firm and possibly give more power to agencies like the FTC and the Department of Justice. Recently the House Judiciary Committee approved six related bills. House of Representatives to strengthen antitrust laws. However, the same judge gave the FTC until August 19th to file an amended complaint against the company. Late last June, a federal judge dismissed antitrust lawsuits brought by the Federal Trade Commission (FTC), 46 states, and the District of Columbia against Facebook.
Although that number was up 36%, it missed the consensus estimate of $685.5 million. It is important to note that the Other segment, which consists largely of consumer hardware such as Oculus virtual reality headsets, totaled $497 million. The following chart depicts the company’s growth in monthly active users over the prior nine quarters. Management reported 2.9 billion monthly active users in June. The average revenue per user climbed to $10.12 versus the $9.66 expected by analysts. However, FCF of $8.51 billion fell short of expectations of $9.08 billion.įacebook’s operating margin grew from 32% to 43%, aided in part by a 47% increase in the price of the average ad, and a 6% growth in the number of ads the company sold. Net income doubled to $10.4 billion from $5.2 billion. Revenue increased by 56%, the greatest revenue growth since 2016. (All comparisons are on a year-over-year basis, unless otherwise noted.)įacebook provided Q2 results on the 29th of July.Įarnings of $3.61 a share beat analysts' estimate of $3.03, while revenues of $29.08 billion also exceeded analysts’ expectations of $27.89 billion. Throw in management’s warning that year-over-year total revenue growth rates are projected to decelerate significantly in the last two quarters of 2021, and you have the likely causes for the stock’s fall.Įven so, FB has prospects for continued growth over the short to mid term, and Zuckerberg has a vision of a world, and of his company, transformed by the Metaverse. There are also concerns that Apple’s ( AAPL) rollout of iOS 14.5 could have an adverse effect on Facebook's ad revenues. The company faces increased governmental scrutiny that includes antitrust risks. Despite reporting top and bottom line beats and recording robust growth in a variety of areas, investors witnessed a drop in share valuation of about 6%. Facebook, Inc ( NASDAQ: FB) provided quarterly results less than a week ago.
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