As Ad Revenue Hits a New High, Facebook Pours Money Into Watch
Facebook is spending big on its Watch video service, hoping to spark interest in the new product, but eventually wants to support the effort with ad revenue, not its own checkbook, CEO Mark Zuckerberg says.
On Wednesday, the social network released third-quarter earnings, topping $10 billion in ad sales for the first time and reporting $4.7 billion in profits. Ad revenue was up 50 percent from the prior year.
It was Facebook’s spending that most concerned Wall Street, as the company promised to pour money into better security to combat the kinds of activity that afflicted the social network during the election. Facebook reps have been in front of Congress this week discussing election meddling, illicit ad buys and fake accounts that aimed to influence the U.S. elections.
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