Facebook's advertising business continues to grow strongly

Earlier, Facebook CFO Ebersman said in the third quarter earnings conference call that the amount of advertising promoted by Facebook through News Feeds will not increase significantly in the future, which caused dissatisfaction among investors (as we all know, most of Facebook's revenue comes from advertising). In response, Ebersman explained that Facebook's strategy is not to launch a large number of advertisements, but to improve the quality of existing advertisements.

Although the proportion of advertising content in Facebook users' news feeds in the fourth quarter increased from 5% in the previous quarter to 10%, Youssef Squali, an analyst at investment company Cantor Fitzgerald, believes that the increase in advertising during the holiday shopping season does not conflict with Facebook's strategy. It is worth noting that, unlike before, in the fourth quarter, the advertising images of some brands in the news feeds received by Facebook users were larger in size, and there were more high-priced click-to-play video ads. Although the launch price has not been disclosed yet, Facebook began testing the auto-playing video ads business last week. Based on the above good news, Youssef Squali raised Facebook's target share price to $65.