Why Facebook Is Still a Great Value
Social media companies were big beneficiaries of the COVID-19 pandemic. Naturally, having consumers confined to their homes meant more time spent in front of screens. This really showed up in the numbers, with most companies in the sector experiencing a spike in monthly active users on their platforms. Facebook (NASDAQ: FB) converted this tailwind into a huge earnings boost, but not simply because it had strong increases in users or even revenue. The company also managed its growth in costs really well, putting its operational wherewithal on full display. It could draw some key lessons from this period, and run a slightly leaner business to supercharge its bottom line.
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Facebook is the standout among social media technology companies, which have typically struggled to generate profits. Year after year, the company attracts steady user growth and turns those newcomers into revenue, thanks in part to fantastic acquisitions like Instagram and WhatsApp.
Source Fool.com
