Facebook’s stock jumped Wednesday into record territory after the social media giant reported stronger-than-expected results for the first quarter thanks to soaring ad revenue, AP reports.
Chief Executive Mark Zuckerberg said the extra money means the company will invest more in new areas of potential growth — including augmented and virtual reality, commerce, business messaging and content creators, such as people who make videos, write newsletters and host podcasts.
“I believe that augmented and virtual reality are going to enable a deeper sense of presence and social connection than any existing platform,” he said in a conference call with analysts. He added that this accounts for a “major part” of Facebook’s research and development budget growth.
Facebook is also expanding its e-commerce offerings and the use of its messaging services for businesses. As for the creator economy, the company is getting into audio, podcasts and independent publishing similar to Substack.
The company said it earned US$9.5 billion, or US$3.30 per share, in the January-March period. That’s up by 94 percent from US$4.9 billion, or US$1.71 per share, a year earlier.
Revenue grew by 48 percent to US$26.17 billion from US$17.44 billion.
The average price of ads on Facebook grew by 30 percent from a year earlier, while the number of ads increased by 12 percent.
