With all the craziness that existed in the world during 2020, Facebook (NASDAQ: FB) managed to have a good year in terms of its business performance. Although out of its direct control, the pandemic-related stay-at-home orders led to a record number of people logging on to Facebook to pass the time.
Despite this tailwind, it shouldn’t be overlooked that 2020 included a recession and significant uncertainty in the economy. How will Facebook fare as it moves forward into 2021?
As mentioned, 2020 included a brief but sharp recession during the second quarter of the year. This matters for Facebook because it primarily makes money by selling advertising, and advertising is generally thought to be an economically sensitive industry.