Facebook has had a tough time lately what with the sharing of fake news on the social media site to their more recent court case in Texas over the alleged theft of intellectual property.
However, these events can still be considered minor setbacks in the grand scheme of things, as with 2 billion users and counting, Facebook is thriving, with more advertisers looking to invest in their services.
Facebook sales for the fourth quarter of 2016 came to some $8.8 billion, an increase of over 50% from last year’s sales and surpassing Wall Street experts’ estimates of $8.5 billion, with mobile advertising accounting for a whopping 84% of all advertising revenue
Nevertheless, the social media network has faced much criticism this year over the increase in the circulation of fake news stories, leading to misconception. Facebook CEO, Mark Zuckerberg, has confirmed that they have taken measures to put an end to these issues, by working with fact-checking companies and implementing some changes within its newsfeed.
Despite some bad press, the fake news saga has not had much of an effect on user’s engagement with the site, with more than half of its regular visitors logging in on a daily basis.
Facebook is only second to Google, in terms of online marketing with millions of companies choosing to promote their services through Facebook and Instagram’s platforms. Shares of the social media network also increased by 2.5% to $136.69.
Moreover, Facebook also recently faced a legal court battle in Dallas, after games publisher ZeniMax Media filed a lawsuit against the company involving the acquisition of the Oculus Rift virtual reality headset. The verdict was filed in ZeniMax’s favour, awarding the company $500 million for damages, after the discorvery of a series of trademark and copyright violations of their software.
However, the loss seemed quite unsubstantial, compared to the $4 billion ZeniMax had sought, and did not seem to bother Facebook executives too much.
The social media network shows no signs of slowing down, although it is planning to reduce its ad load, that is the number of ads that feature in users’ newsfeed between shared content. This will leave the company open to seek out new sources of revenue generation from its other apps, namely Instagram, as well as Messenger and WhatsApp eventually.