Facebook posted profits of more than $10 billion in the second quarter of 2021, doubling the result from the same period last year. Monthly active users, including Instagram and WhatsApp, were 3.51 billion as of June 30, 2021, almost half of the world’s population.
The tech giant’s revenue was $29 billion from April to June, an increase of 56% compared to the same three months in 2020 and even surpassing analysts’ average expectations of $27.8 billion. Facebook’s strong performance follows the record financial reports of other Big Techs in recent days, such as Apple, Microsoft, Tesla and Alphabet, which owns Google.
However, Big Tech shares fell on the New York Stock Exchange. That’s because Facebook said its growth rate is likely to drop by the end of the year, especially due to the reduction in sales of digital ads related to the economic recovery after the crisis caused by covid-19.
Facebook recently renewed its commitment to the “metaverse” project, which involves using artificial reality and virtual reality to allow users to inhabit digital worlds together.
“Over the next few years, I hope people will transition from seeing us primarily as a social media company to seeing us as a metaverse company,” said Mark Zuckerberg, CEO of Facebook.
The company is investing in its Oculus division to build the necessary hardware. Zuckerberg believes Facebook will also be able to make money from the metaverse through the sale of digital goods and experiences.
The trend towards restrictions against tech companies could derail Zuckerberg’s plans. The US government has condemned Facebook and other companies for not taking action against vaccine misinformation. Initiatives by US lawmakers and the US Federal Trade Commission can also hamper the company’s results.