Facebook, one of the biggest social media platforms, was able to increase its stocks by up to 4.1%. This sudden revenue was made possible by Mark Zuckerberg after he changed his tune towards Apple’s imminent privacy update. Previously, Apple and the popular social media site had a huge fight because of the smartphone manufacturer’s privacy changes.
However, Facebook seems to change its thoughts regarding the privacy updates since Mark Zuckerberg said that Apple’s latest privacy changes could help different social media giants. After FB’s tech CEO explained his thoughts, the company’s shares to more than $290 million. He said that “I think the reality is that I’m confident that we’re gonna be able to manage through that situation.”
Facebook’s CEO added that they will “be in a good position. I think we may even be in a stronger position.” The Apple iOS 14 software update will require app developers including Facebook to request permission from users before tracking them through Apple’s Identified for Advertisers (IDFA).
Zuckerberg further explained that “Apple’s changes encourage more businesses to conduct commerce on our platforms, by making it harder for them to basically use their data in order to find the customers that would want to use their products outside of our platforms.” His statements really contradict Facebook’s previous stand against Apple’s new privacy policies. Recently, the company has been pushing back against the Apple iOS update.
Facebook’s previous stand
Facebook claimed that the new privacy updates will impact its Audience Network since these changes can limit the social media site’s power to deliver targeted ads, which could lead to a 50% decrease in its iOS revenue.
The social media company said that Apple forced its iOS 14 updates on the platform. FB added that this could severely affect the publishers’ ability to monetize through Audience Network on iOS 14.
Should you invest in FB?
Since the social media company was able to increase its stock shares, it is a good thing if people start to invest in it. In December 2020, the social media giant had more than 3.3 billion monthly active users, representing a 14% year-over-year increase. Companies looking to reach a large clientele with targeted ads will continue to flock to Facebook’s ecosystem, and the tech giant will attract even more advertisers as the number of users on its platform continues to grow.
On the other hand, this social media company also benefits from tremendous name recognition. Last year the company’s main website was the third most popular in the world by monthly visits, according to Statista. Instagram was in the top 10, while WhatsApp was in the top 20. Analysts and experts predicted that in the next five years, more than half of the world’s population will use the apps offered by FB. However, this could still depend on the obstacles that the company will encounter, especially since Mark Zuckerberg and his platform are facing multiple accusations against its user data security features.
We are a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for us to earn fees by linking to Amazon.com and affiliated sites.