Facebook CFO David Wehner said Tuesday that the social media company’s ad growth rate could be affected if more consumers get their Covid-19 vaccinations and shift their spending back to services like travel instead of consumer goods.
“We expect some of the consumer spending to shift back to services in places like travel as we get further into the year and people get vaccinated,” said Wehner, speaking at the Morgan Stanley Technology, Media and Telecom Conference. “That could affect our growth rate, because we tend to under-index in some service sectors relative to the economy as a whole.”
Wehner said it is still difficult to make predictions for 2021 with so much uncertainty, but in general Facebook expects growth in e-commerce ad sales to slow. E-commerce was a key sector that fueled Facebook’s growth in the third and fourth quarters of 2020, Wehner said.
“The acceleration that we saw in the e-commerce growth side, that’s going to slow down because we’re not going to have the same drivers of acceleration that are pushing people to shift online,” Wehner said. “We do think online is going to become a bigger component of people’s activities, so we think we’re going to see those increases continue. But I don’t think the shift will be that fast, so that will be a bit of a headwind for our business.”
Facebook growth rate may be affected by Covid vaccines as consumers shift spending to services