Young Research & Publishing Inc.

Investment Research Since 1978

Disclosure – Please click here to read the full disclosure.

  • About Us
    • Contributors
    • Archives
    • Dick Young’s Safe America
    • The Final Richard C. Young’s Intelligence Report
    • You’ve Read The Last Issue of Intelligence Report, Now What?
    • Dick Young’s Research Key: Anecdotal Evidence Gathering
    • Crisis at Vanguard
  • Investment Analysis
    • Bonds
    • Currencies and Gold
    • Dividend Investing
    • ETFs & Funds
    • Investment Strategy
    • Retirement Investing
    • Stocks
    • The Efficient Frontier
  • Investment Counsel
  • Retirement Compounders®
  • Free Email Signup

Facebook Still an Ad Business

March 25, 2020 By Jeremy Jones, CFA

By Rzt_Moster @ Shutterstock.com

Facebook usage and traffic is soaring, but the company warned business may not be booming. At its core, Facebook (and Google) is still in the advertising business. If small and large businesses are drawing down credit lines and conserving cash, the ad budget is one of the first items that will be cut. Eric Savitz reports for Barron’s:

In the latest indication that the market for digital advertising is struggling in the face of the rapidly spreading coronavirus pandemic, Facebook disclosed in a blog post that the social network has “seen a weakening in our ads business in countries taking aggressive actions to reduce the spread of Covid-19.”

The disclosure on Tuesday by Facebook (ticker: FB) came a day after Twitter (TWTR) dramatically reduced its outlook for the current quarter in the face of a weaker ad market.

Like Twitter, Facebook has seen a spike in the use of some of its services—the company said it has seen record use almost every day. But, “we don’t monetize many of the services where we’re seeing increased engagement.”

In some of the hardest-hit countries, messaging volumes are up more than 50% month-over-month. In the same markets, Facebook said, voice and video calling have more than doubled on Messenger and WhatsApp. Facebook said that to help alleviate potential network congestion, it is “temporarily reducing bit rates for videos on Facebook and Instagram in certain regions.”

Share this:

  • Email
  • Twitter
  • Facebook

You Might Also Like:

  • Has Facebook Peaked?
  • Amazon’s Amazing Business
  • Will Houseparty Dethrone Facebook?
  • Author
  • Recent Posts
Jeremy Jones, CFA
Jeremy Jones, CFA, CFP® is the Director of Research at Young Research & Publishing Inc., and the Chief Investment Officer at Richard C. Young & Co., Ltd. CNBC has ranked Richard C. Young & Co., Ltd. as one of the Top 100 Financial Advisors in the nation (2019-2022) Disclosure. Jeremy is also a contributing editor of youngresearch.com.
Latest posts by Jeremy Jones, CFA (see all)
  • Money Market Assets Hit Record High: $5.4 Trillion - May 26, 2023
  • The Mania in AI Stocks Has Arrived - May 25, 2023
  • The Wisdom of Sam Zell - May 24, 2023

Search Young Research

Most Popular

  • Starving for Fixed Income? I Can Help
  • June Is Retirement Compounders Month
  • ALLIGATOR MARKET: Calm Surface Hides Danger Below
  • Vanguard Wellesley (VWINX) vs. Wellington (VWELX): Which Fund is Best?
  • CBDCs Not “Just Another Form of Money”
  • What's Hiding In the London Metals Exchange Warehouses?
  • End of ESG?
  • China Increases Its Gold Reserves for Seventh Month Straight
  • Successful Investing Is a Mindset
  • Young’s Retirement Compounders

Don’t Miss

Default Risk Among the Many Concerns with Annuities

Risk and Reward: An Efficient Frontier

How to be a Billionaire: Proven Strategies from the Titans of Wealth

Cryptocosm and Life After Google

Warning: Avoid Mutual Fund Year End Distributions

Is Gold a Good Long-term Investment?

How to Invest in Gold

Vanguard Wellington (VWELX): The Original Balanced Fund

What is the Best Gold ETF for Investing and Trading?

Procter & Gamble (PG) Stock: The Only True Dividend King

The Dividend King of the North

You’ll Love This if You’re Dreaming of an Active Retirement Life

The Importance of a Balanced Portfolio

Invest with Peace of Mind and Comfort

What Kind of Life Are You Investing For?

RSS The Latest at Richardcyoung.com

  • Smoke Gets in Your Eyes
  • Investing Mistakes to Avoid: #10 Picked Off First
  • Carlson Urges America: “Cling to Your Taboos!”
  • TRUMP INDICTED: President Releases Video Defending Innocence
  • Oh Canada: Wildfires at a Blistering Pace
  • RAGE Gauge June: Remember When You Were A Kid and Money Was Free?
  • What Do You Know About Vanguard’s Wellesley Income Fund?
  • CRUMBLING EMPIRE: Major Hotel Flees San Francisco as City Suffers
  • MUSIC IN DANGER: Is This the Worst Use for AI?
  • Crushing the Heretics

RSS The Latest at Yoursurvivalguy.com

  • Investing Mistakes to Avoid: #10 Picked Off First
  • HOUSING CRISIS: California Could Face Mortgage Default Tsunami
  • Why Is Biden Sacrificing Mining Dominance to the Chinese?
  • RAGE Gauge June: Remember When You Were A Kid and Money Was Free?
  • Your Retirement Life: Striped Bass Fishing off Block Island
  • Artificial Intelligence or Four-Year Olds?
  • Forbes Global 2000: The Bigger They Are, the Harder They Fall?
  • Starving for Fixed Income? I Can Help
  • SUPER STATE RISING? This State Is Doing All the Right Things
  • End of ESG?

About Us

  • About Young Research
  • Archives
  • Contributors

Our Partners

  • Richard C. Young & Co.
  • Richardcyoung.com

Copyright © 2023 | Terms & Conditions

 

Loading Comments...
 

    loading Cancel
    Post was not sent - check your email addresses!
    Email check failed, please try again
    Sorry, your blog cannot share posts by email.