Facebook Inc. reported higher second-quarter sales and profit but struck a cautious tone looking ahead, saying growth could stall as Apple Inc.’s new rules pinch data collection on mobile devices and as pandemic-fueled advertising gains subside.
The social media giant said it faces “ad targeting headwinds in 2021 from regulatory and platform changes,” sending the shares down as much as 5.2% in extended trading.
The warning came as the company reported quarterly sales climbed 56% to $29.1 billion, compared with the $27.9 billion average estimate of analysts, according to data compiled by Bloomberg. In a statement Wednesday, Facebook reported 1.91 billion daily active users for its flagship social network, just matching projections. The company’s user numbers in the U.S. and Canada were unchanged from the prior quarter.