Facebook Quarterly Profit Jumps Despite Ad Boycott

Facebook's profit jumped in the recently-ended quarter as the leading social network benefitted from a rebounding online ad market despite a boycott, the company reported Thursday.

Facebook profit jumped 29 percent to $7.8 billion in the quarter on revenue that climbed to $21.2 billion as people continued to rely on the internet and social media to stay connected while staying safe from the pandemic, the company said.

Organizers of a Facebook ad boycott vowed to continue their campaign, saying the company's top executives failed to offer meaningful action on curbing hateful content.

Meanwhile, conservatives have accused Facebook and others of political bias as the platforms step up their oversight of content to clamp down on false or violent material.

President Donald Trump has threatened new regulatory measures which could impact the business models of platforms.

Analyst have noted, however, that as advertisers rely on the internet to connect with customers during the pandemic the brands tend to prefer spending their money on proven platforms such as Facebook and Google.

"Facebook has rebounded nicely from both the early-pandemic advertiser pullout, when marketers pulled ads across all media to redo messaging or conserve funds, and from the July ad boycott," said eMarketer analyst Debra Aho Williamson.

"Despite its challenges with election turmoil and content moderation, it remains a go-to for advertisers seeking to engage a broad base of consumers," she said.

Facebook chief executive Mark Zuckerberg said people and businesses continued to rely on the company's services to stay connected, and do business, during tough economic times .

However, user growth in North America could decline as lives return to more normal patterns.

Facebook shares rose slightly less than a percent in after-hours trading.

Copyright AFP. All rights reserved.

RECENT NEWS

NVIDIAs Earnings Surge: Why It Matters

NVIDIA Corporation’s recent financial results for Q3 FY2025 have sent ripples across the semiconductor and AI industri... Read more

Adanis Legal Storm: Bribery Charges Unveiled

Indian billionaire Gautam Adani, chairman of the Adani Group, finds himself at the center of an international storm afte... Read more

AI-Powered Advisors Redefine Wealth

As financial services undergo a significant transformation, the concept of a "Cyborg Wealth Advisor" has emerged as a pi... Read more

McKinsey: Global Banks Face Existential Profit Threat

In 2024, global banking stands at a precipice. McKinsey’s latest Global Banking Annual Review paints a stark picture: ... Read more

US Tax Exodus Sparks Economic Shockwaves

Over the last decade, the United States has seen a distinct migration shift, with individuals and businesses relocating ... Read more

AI Invades Law: Helping Or Hurting?

Artificial Intelligence (AI) is reshaping nearly every sector, and the legal industry is no exception. Once viewed as a ... Read more