Facebook's slowdown warning hangs over strong ad sales, while Zuckerberg talks 'metaverse'

Record ID: 1629254

  • Title: Facebook's slowdown warning hangs over strong ad sales, while Zuckerberg talks 'metaverse'
  • Date: 28th July 2021
  • Summary: NEW YORK, NEW YORK, UNITED STATES (FILE) (REUTERS) FACEBOOK ON MOBILE PHONE VARIOUS ON FACEBOOK ON LAPTOPS
  • Embargoed: 11th August 2021 15:29
  • Keywords: Facebook Menlo Park Sandberg Zuckerberg earnings social media
  • Location: NEW YORK, NEW YORK + MENLO PARK, CALIFORNIA, UNITED STATES / UNKNOWN LOCATION
  • City: NEW YORK, NEW YORK + MENLO PARK, CALIFORNIA, UNITED STATES / UNKNOWN LOCATION
  • Country: USA
  • Topics: Company News Markets,Economic Events,United States
  • Reuters ID: LVA001ENR7O07
  • Aspect Ratio: 16:9
  • Story Text: Facebook said on Wednesday (July 28) it expects revenue growth to "decelerate significantly," sending the social media giant's shares down 3.5% in extended trading even as it reported strong ad sales.
    The warning overshadowed the company's beat on Wall Street estimates for quarterly revenue, bolstered by increased advertising spending as businesses build their digital presence to cater to consumers spending more time and money online.
    Facebook said it expects Apple's recent update to its iOS operating system to impact its ability to target ads and therefore ad revenue in the third quarter.
    The iPhone maker's privacy changes make it harder for apps to track users and restrict advertisers from accessing valuable data for targeting ads.
    The company also announced on Wednesday that it would require anyone working at its U.S. offices to be vaccinated against COVID-19, joining Alphabet and Netflix.
    Monthly active users came in at 2.90 billion, up 7% 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, according to IBES data from Refinitiv.
    (Production by: Dan Fastenberg, Soren Larson)
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  • Copyright Notice: (c) Copyright Thomson Reuters 2021. Open For Restrictions - http://about.reuters.com/fulllegal.asp
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