Facebook (NASDAQ:FB) is a powerhouse in the online adverting space. The firm posted revenue growing an incredible 18%. Operating revenue rose 78%. The lockdown drove daily active usage higher. This suggests that the site will consolidate its strength against the likes of Snap (NYSE:SNAP) and Twitter (NYSE:TWTR).
Facebook’s DAU rose 11% to a solid 1.73 billion. Monthly active users rose 10% to 2.6 billion. But the company conceded that weakness worsened in the last three weeks of March. It said there was a "significant reduction in the demand for advertising, as well as a related decline in the pricing of our ads."
Google (NASDAQ:GOOGL), which also relies on ad spend for growth, reported solid first-quarter revenue growth of 13% Y/Y to $41.16 billion. Net income rose to $6.84 billion. The 33.5% ad revenue growth at YouTube and 8.7% growth in Google Search to $24.5 billion suggests that no other site has the moat that Google enjoys.
Twitter posted daily active users topping 166 million, up from 134 million last year. Despite the stock falling after the report, Twitter’s growth could accelerate in the second quarter. Coverage on the presidential election and a re-opening of sports events would lift the site’s traffic.
Of the three companies, Facebook and Google are good core holdings. Twitter is an underdog that still has to prove itself.
