Facebook (FB, Financial) stock benefited from the continued renaissance in digital advertising. The company in April reported very strong first quarter results, including a near doubling of net income relative to first quarter 2020 and a nearly 50% year- over-year increase in revenue.2 While easy comps have helped drive strong revenue growth, it’s reasonable to think that ad budgets in certain industries and geographies may still have room to grow given the fractured nature of the post-Covid economic reopenings worldwide. In late June, Facebook posted a key legal victory as a US District Court judge dismissed separate antitrust complaints brought against the company by the Federal Trade Commission and a consortium of 48 state attorneys general. In his decision, the judge assigned to the case noted that the complainants failed to establish that Facebook has “monopoly power.”
From First Eagle Investment (Trades, Portfolio) Fund of America's second-quarter 2021 commentary.
