Facebook May Be Hit Harder Than You Think by COVID-19
Tech companies like Facebook (NASDAQ: FB) may not be the first ones you think of being hurt by COVID-19, but it may see a huge impact from the virus. Sure, people will continue to log on to Facebook to connect with friends and family, in some cases as much as 50% more than before. But that's not how Facebook makes money.
At the end of the day, it's an advertising-driven company: 98% of its revenue comes from advertising, and there's no indication that will change. So if advertising dries up in the next few quarters, it makes sense that Facebook would feel the brunt of that cutback. And there's reason to believe the cutback in Facebook spending may be worse than elsewhere.
Facebook's Seattle office. Image source: Facebook.
Source Fool.com
