Facebook Doubles Profits But Prepares For Apple’s Privacy Changes

Facebook (FB) Wednesday reported nearly $ 29.1 billion in revenue for the quarter ended June 30, a rate of 56% jump from the same time last year, when online advertising took a hit as businesses grappled with Covid-19. The company also more than doubled its quarterly profit for nearly $ 10.4 billion, well above the $ 8.7 billion forecast by analysts.

However, the outlook for the rest of 2021 is not that bright, CFO David Wehner said in a statement.

Sales growth could slow thanks to “regulatory and platform changes,” Wehner said, specifically pointing to Apple’s recent IOS Application Tracking Rules. The changes, which took effect in April, are likely to have a bigger impact on Facebook’s business in the third quarter than in the second, he said.

Facebook stock fell nearly 4% in after-hours trading after the results report.

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Apples (AAPL) The iOS 14.5 software update requires users to explicitly allow apps to track their behavior and sell their personal data, such as age, location, spending habits, and health information, to advertisers. Facebook, which makes almost everything of its advertising dollars, aggressively pushed back on changes and warned investors last year that the update could harm its business if many users opt out of tracking.
Facebook is also facing increasing regulatory oversight. The company and its fellow tech giants are the target of a list of new antitrust bills proposed by House lawmakers last month. And the company recently had a difficult exchange with the White House after President Joe Biden claimed that health disinformation on social media platforms was “killing people,” although it subsequently receded slightly.
A small group of protesters On Wednesday, outside Facebook’s Washington DC office, body bags were labeled with labels saying “disinformation kills.” On Tuesday, Facebook announced a partnership with Meedan’s Digital Health Lab, a global nonprofit tech organization, to help train fact-checkers to spot health misinformation.

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