Facebook Is Unscathed Despite Public Backlash

The recent Capitol riots have sparked a lot of controversy and public interest in the social media stocks. Privacy and content sharing policies across platforms like Facebook (Nasdaq: FB) have become a matter of national interest. During the quarter, Facebook has had to take a strong stand on its political policy – a rare move by the company.

Facebook’s Financials

Facebook’s Q4 revenues grew 33% to $28.1 billion, ahead of the market’s estimates of $26.36 billion. Adjusted EPS was $3.88 and surpassed the market’s forecast of $3.24.

Advertising revenues grew 31% to $27.2 billion and other revenues grew 156% to $885 million.

Daily active user (DAU) numbers for the core Facebook app grew 11% over the year to 1.84 billion and monthly active users (MAU) grew 12% to 2.8 billion. The number of people active on any one of its family of products, which includes WhatsApp and Instagram, grew 14% to 3.3 billion people per month in the quarter. Daily active users on these applications came in at 2.6 billion.

Facebook’s VR Growth

Facebook continues to improve its product offerings. Last quarter, it launched Quest 2 and is on track to be the first mainstream virtual reality headset. The headset has been designed so that anyone could use it and get the most immersive experience. With people being stuck at home, Facebook expects the headset to be received very well in the market.

It is also seeing a growing ecosystem of developers that continue to build new experiences for the platform. Right now, Facebook is helping more than 60 Oculus developers generate revenues. Facebook did not comment on the actual revenues earned by these developers but did say that they were earning in the millions.

Besides the headset, Facebook is also working on augmented reality glasses as a part of its VR-focused future. It is still working on some of the foundational technology of the glasses and believes that its product launch is still a few years away. Its glasses from Ray-Ban are being built in partnership with Luxottica.

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Disclosure: All investors should make their own assessments based on their own research, informed interpretations and risk appetite. This article expresses my own opinions based on my own ...

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