Facebook posts strong 4Q as company closes gap with Google

SAN FRANCISCO -- Facebook is growing at an exceptional pace as it enters adolescence, propelling it into a better position to challenge Google as the Internet's most powerful company.

See Full Article

Facebook's fourth-quarter report released Wednesday provided the latest gauge of the company's impressive strides.

It marked the first time that Facebook's quarterly revenue has surpassed $5 billion -- more than fading Internet star Yahoo now generates in an entire year. Facebook's earnings also more than doubled to $1.56 billion, even as the Menlo Park, California, company invests heavily in virtual reality, Internet access in remote parts of the world and a mobile ad network for services other its own.

The performance lifted Facebook's stock by $6.78, or 7 per cent, to $101.23 in extended trading after the report came out.

Although Google remains three times larger by revenue, Facebook has been steadily closing the gap as it sells more mobile advertising on its addictive social-networking app. And it's just beginning to mine revenue from its trendy Instagram service and a rapidly expanding video library.

This spring's debut of the Oculus Rift headset, part of the virtual-reality technology that Facebook bought for $2 billion in 2014, could open another lucrative market. Google is now hiring more virtual reality specialists, a sign that is trying to catch up with Facebook in a still-nascent field that could transform computing.

Social networking remains Facebook's foundation. The service picked up another 46 million users during the final three months of last year to expand its worldwide audience to 1.59 billion users.

Google, now a part of the recently created Alphabet Inc., is thriving, too, with more than 1 billion users on its search engine as well as its YouTube video site and its Android software for mobile devices. That makes it unlikely that Facebook will topple Google anytime soon.

Powered by the world's dominant Internet search engine, Google still sells the most digital advertising by a wide margin. Just how much more will be disclosed Monday, when Alphabet is scheduled to announced its fourth-quarter earnings. Alphabet is expected to post fourth-quarter revenue of nearly $17 billion, after subtracting ad commissions, nearly tripling what Facebook generated during the same three-month period.

But consider this: Facebook will be turning 12 years old next week and it just posted revenue of $5.8 billion in its latest quarter. At the same stage of its existence in September 2010, Google's net revenue stood at $5.5 billion.



Advertisements

Latest Economic News

  • Air Canada expanding codeshares for 2018 Canada-China Year of Tourism

    Economic CTV News
    MONTREAL - Air Canada (TSX:AC) and Air China Ltd. say they will be expanding their mutual codeshare services in time for the 2018 Canada-China Year of Tourism. Air China will place its code on Air Canada's new daily Montreal-Shanghai flight, as well as Air Canada's flights from Vancouver to Victoria, Kelowna, Saskatoon and Regina. Source
  • Canadian cellular prices declining, mainly for talk and text, report finds

    Economic CBC News
    Prices for cellphone service in Canada came down in the last year, but only if you don't use your cellphone very much. That's one of the major takeaways from a new report looking at telecom services and how they stack up with the rest of the world, and compared to what they used to be. Source
  • TransCanada clashes with pipeline opponents at Nebraska hearing

    Economic CBC News
    Opponents of TransCanada Corp's proposed Keystone XL oil pipeline argued on Tuesday that regulators in Nebraska had no authority to approve the line's "alternative" path through the state and that the project should be considered dead. Source
  • Hydropothecary cannabis expansion plans to put it among top producers in Canada

    Economic CTV News
    GATINEAU, Que. -- Shares of Hydropothecary Corp. were up nearly 18 per cent after the licensed medical cannabis producer announced plans that will see it further grow its operations in Quebec. The company (TSXV:THCX) says it has acquired property adjacent to its existing facility in Gatineau, Que. Source
  • Desjardins, provincial credit unions and Cumis partnering to create Aviso Wealth

    Economic CTV News
    TORONTO -- Quebec credit union Desjardins Group is partnering with five credit union centrals across the country and insurer Cumis Group Ltd. to form Aviso Wealth, with over $55 billion in combined client assets. The new wealth management company will bring together the businesses of their subsidiaries, Credential Financial Inc. Source
  • PepsiCo makes biggest public pre-order of Tesla Semis: 100 trucks

    Economic CBC News
    PepsiCo Inc. has reserved 100 of Tesla Inc.'s new electric Semi trucks, the largest known order of the big rig, as the maker of Mountain Dew soda and Doritos chips seeks to reduce fuel costs and fleet emissions, a company executive said on Tuesday. Source
  • MTY Food Group signs deal to buy Imvescor Restaurant Group for $248 million

    Economic CBC News
    MTY Food Group Inc. is growing beyond the shopping mall food court with a $248-million stock-and-cash deal to buy Imvescor Restaurant Group Inc. and its full-service restaurant and grocery products businesses. The friendly deal will bring together such MTY banners as Thai Express, Vanellis and Manchu Wok with Imvescor's Baton Rouge, Pizza Delight and Scores restaurants to create a company with a portfolio of over 5,700 stores under 75 brands. Source
  • Iceland closes gender gap but violence against women remains

    Economic CTV News
    REYKJAVIK, Iceland -- For nine years in a row, the World Economic Forum has ranked Iceland as having the world's smallest gender-equality gap, and for about as long gender studies professor Gyda Margret Petursdottir has been asked how the Nordic island nation became such a paradise for women. Source
  • Lyft ride-hailing app arrives in Toronto, marking its first expansion outside U.S.

    Economic CTV News
    TORONTO -- Ride-hailing service Lyft will be available in Toronto starting today. Torontonians can download the Lyft app to being ordering rides in the city. The company's arrival in Toronto marks the first time it has expanded outside the US. Source
  • Bombardier signs deal to sell Aventra trains in U.K.

    Economic CTV News
    BERLIN - Bombardier Transportation (TSX:BBD.B) has signed a deal to supply 333 new rail cars, along with a contract for maintenance work, with a U.K. rail company. Corelink Rail Infrastructure and West Midlands Trains will receive 333 new Bombardier Aventra vehicles for use on the United Kingdom's West Midlands Trains franchise. Source