FACEBOOK REVENUE HIT BY COVID-19 DESPITE INCREASING SCREEN-TIME
Despite increasing on user activity during pandemic hours, Facebook seems to have a hard time monetizing its infamous advertising revenue.
On March 24, Facebook announced via blog post that user-app engagement has significantly rising across all subsidiary platform, however Facebook also said “”We don’t monetize many of the services where we’re seeing increased engagement, and we’ve seen a weakening in our ads business in countries taking aggressive actions to reduce the spread of COVID-19.”
Cowen analyst John Blackledge estimates digital advertisers could lose $45 billion in ad revenue relative to previous expectations in 2020. As one of the large digital advertisers, Facebook will definitely be significantly affected, which is why the stock is down 13.3% since March 2020.