Facebook generates over $10bn through advertising
Facebook has come a long way from its early days as a platform for those in higher education. As of 2017 the social network has over 2 billion active users, an amazing figure considering the amount of completion currently vying for your attention.
The site's origins can be traced back to 2003 when Mark Zuckerberg, founder and current CEO created the first iteration at Harvard University (Facemash). Following a meteoric rise, a name change and the site opening up to anyone over the age of 13 Facebook monetised the site creating one of the most profitable internet businesses in history.
This week Facebook posted profits of $4.7bn (£3.5bn) in the three months to the end of September, up 80% year-on-year. Ad revenue broke the $10bn mark for the first time in the company’s history.
Chief executive Mark Zuckerberg told investors the firm's investments in security would "impact" profitability, stating "We're serious about preventing abuse on our platforms," Mr Zuckerberg said. "Protecting our community is more important than maximising our profits."
Following Zuckerberg's announcement shares in the firm fell about 1.5% in after-hours trade. This drop could also be attributed to Washington's interest in Facebook's influence on last year's Presidential election. Lawmakers, who are eyeing increased regulation of internet companies, pressed for increased disclosure around political ads, as well as information about how the firm polices false content.
It’s unlikely to worry investors with the business boasting a 47% year-on-year growth pattern. With aims to raise rates over the next 12 months now could be the time to invest in the social network.