Facebook Inc said on Wednesday it expects revenue growth in the third and fourth quarters to “decelerate significantly,” sending the social media giant’s shares down about 5% in extended trading.
The company beat Wall Street estimates for quarterly revenue, bolstered by increased advertising spending as businesses build their digital presence to cater to consumers spending more time and money online.
The company’s total revenue, which primarily consists of ad sales, rose to $29.08 billion in the second quarter from $18.69 billion a year earlier, beating analysts’ estimates of $27.89 billion, according to IBES data from Refinitiv.
Facebook, like its peers, has seen increased demand for digital ads as the pandemic drove consumers to shop largely online, forcing several businesses to create an online store and market using social media platforms.
The world’s largest social network’s revenue from advertising rose 56% to $28.58 billion in the second quarter ended June 30, Facebook said.
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